The ongoing conflict in Iran is creating significant economic headwinds for small business owners throughout the United States. Companies are facing a complex web of challenges, including disrupted shipping routes, escalating costs, and a potential slowdown in consumer spending.

Supply Chain Disruptions and Rising Costs

The situation is impacting a wide range of industries. From footwear to food exports and lawn care, businesses are feeling the strain. Brandon Fried, executive director of the Airforwarders Association, explained, “The costs are rising, the routes are changing, and capacity is tightening. It’s all happening at the same time, and that’s a perfect storm for small businesses.”

Pistachio Exports Stranded

Nichols Farms, a fourth-generation pistachio grower and processor in Hanford, California, is experiencing firsthand the impact on exports. Jared Lorraine, the company’s chief operating officer, reported that approximately $5 million worth of pistachios were left stranded at sea when the conflict began. Exports to Saudi Arabia, Iran, and the United Arab Emirates have been particularly affected due to the effective closure of the Strait of Hormuz. While some shipments were rerouted, around $3.5 million remains in limbo.

Footwear Industry Faces Higher Shipping Fees

Matthew Tran, founder of the Los Angeles-based footwear brand Birchbury, is grappling with doubled shipping costs from Vietnam. Containers that previously cost around $3,500 now cost approximately $7,000. Shipping times have also increased by three to four weeks. Tran expressed concern about the potential duration of the conflict and its impact on consumer spending, noting that rising gas prices are already affecting discretionary purchases.

Fertilizer Prices Surge

In Kansas City, Missouri, Jake Wilson, owner of Top Class Lawn Care, is proactively stockpiling fertilizer. The Middle East accounts for nearly 30% of global fertilizer exports, and the conflict has caused prices to spike. Wilson, who serves nearly 400 lawns, is attempting to secure fertilizer through the fall to avoid raising prices for customers who have already prepaid for annual service. He explained his strategy: “It’s kind of on me to try to get out ahead of it, the best I can, so I could still try to be profitable while keeping prices where I quoted at the beginning of the year.”

The combined effect of these disruptions presents a challenging environment for small businesses, forcing owners to adapt quickly and navigate an increasingly uncertain economic landscape.