NABE: Iran War Costs Hurt 48% of US Firms

Rising costs tied to the U.S. and Israel's war against Iran are straining American businesses, with nearly half of surveyed economists reporting negative impacts on operations and many anticipating cutbacks in hiring and investment ahead.

A report released Monday by the National Association for Business Economics revealed that 48 percent of its respondents, economists from businesses, trade associations and academia, said the conflict has hurt their firms. More than half, 54 percent, cited rising energy prices as a key factor, while over two-thirds noted steeper material expenses in the past three months, the highest share since July 2022.

The war began February 28 with U.S. and Israeli attacks on Iran, sparking a global energy crisis. Ongoing tensions between Washington and Tehran in the Strait of Hormuz have driven up crude oil prices, inflating transportation costs and disrupting supplies of essentials like fertilizer. Households face higher prices at the gas pump, and businesses are passing on some of the burden to consumers.

Nearly half of respondents, 48 percent, indicated their firms have already raised prices for customers to offset costs, down slightly from 60 percent in...