The escalating conflict in the Middle East, specifically the war with Iran, is having a profound impact on small businesses across the United States. This article delves into the stories of several small business owners, shedding light on the challenges they face and the broader implications for the economy.
The Double Whammy: Rising Costs and Softening Demand
John Andrews, a chef and owner of a meal delivery service in South Carolina, encapsulates the struggles many small businesses are enduring. With rising food and gas prices, he finds himself in a difficult position. Despite working tirelessly, Andrews is losing ground financially. This sentiment is echoed by Kim Williams, the owner of Enchanted Florist in Burbank, California, who carefully plans her delivery routes to minimize gas expenses.
What makes this particularly interesting is the interplay between global events and local businesses. The war with Iran, a country under sanctions, has disrupted oil supplies, leading to higher global prices. This ripple effect is felt by small businesses like Andrews' and Williams', who are now grappling with increased costs and the challenge of maintaining their customer base.
Passing on the Burden: Rising Prices and Customer Retention
Andrews, who offers delicious meals like lemon garlic chicken and pepper steak, faces a dilemma. He hasn't raised prices since the inflationary spike two years ago, but with the current situation, he may have no choice. His concern lies with his primarily elderly clientele, who might not accept frequent price increases. This highlights a broader challenge for small businesses: balancing the need to cover rising costs without alienating customers.
A Broader Trend: Small Businesses Under Strain
The war with Iran is exacerbating an already challenging environment for small businesses. According to a Federal Reserve report, many small businesses reported declining revenues in 2025, and expectations for growth have fallen to their lowest since 2020. This trend is evident in various sectors, from meal delivery to florists and tour operators.
The Impact on Tourism and Beyond
Chris Leschinger, founder of Hollywood Bus Tours, has witnessed a slowdown in business due to factors like fires and immigration crackdowns. His concern extends beyond gas prices; he worries about the broader political climate and its impact on tourism. This showcases how small businesses are not only affected by direct costs but also by indirect factors that influence consumer behavior.
The Trucking Industry: A Microcosm of the Economy
Kareem Miller, owner of Strong Pact Trucking in Chicago, highlights the significance of the trucking industry. With three trucks collectively covering 1,200 miles daily, he is acutely aware of the impact of rising diesel prices. If these costs continue to climb, Miller will likely have to raise his transportation rates, which could lead to a cascade of higher prices across various industries. This underscores the interconnectedness of the economy and the crucial role played by small businesses like Miller's.
In conclusion, the war with Iran and its associated economic impacts are squeezing small businesses, threatening their survival and the broader health of the US economy. As these businesses navigate rising costs and softening demand, their stories serve as a reminder of the human face of economics and the challenges faced by entrepreneurs across the country.
