Business owners across the United States are reporting mounting difficulties as the US war on Iran adds another major disruption to an already strained global supply chain.
Jeff Vojta, CEO of Dilworth Coffee in Raleigh, North Carolina, has faced successive shocks since a poor Brazilian coffee crop in 2024 sent coffee futures to record highs, followed by higher costs after President Donald Trump imposed global tariffs the following year.
The war on Iran has added another layer of uncertainty.
“Between shipping disruptions, the lack of containers, high costs because of what’s going on in the Red Sea and higher fertilizer costs, we have this period of disruption that we’ve never encountered before,” Vojta said.
“There’s just so much uncertainty.”
The economic pressure is being felt across industries, with companies facing higher transportation, energy and raw-material costs while consumers remain reluctant to accept further price increases.
“This is a bigger problem than COVID, for sure,” said Jack Buffington, director of the supply chain program at the University of Denver.
“This is completely different. This is an energy problem.”
Meanwhile, the consequences of the US war on Iran have extended beyond oil markets as shipping companies reroute vessels away from dangerous waterways, reducing available global shipping capacity and increasing transportation costs.
Ryan Petersen, CEO of Flexport, said the disruption was unprecedented in his 25 years in logistics.
“I’ve been in logistics for 25 years, and I’ve never seen anything as bad as this,” he said.
Small businesses are particularly exposed because they have less cash available to absorb sudden increases in operating costs.
“Small businesses will absorb as much cost as they can until the very last minute,” said Sean Brownlee, CEO of Ravenox.
“Now we’re feeling acute pressure.”
Brownlee said he entered manufacturing after a 25-year career in the US Marine Corps to build a company supporting American jobs, but the unpredictable supply environment is now threatening that objective.
“This issue really hits home,” Brownlee said.
“We just want predictability.”
The instability has also changed how businesses plan.
Vojta said Dilworth Coffee, which previously secured coffee sources 12 to 24 months ahead, is now sourcing only three to six months in advance because of uncertainty over prices, shipping and supplies.
The company also has less cash available for inventory, while thinner margins and weaker consumer purchasing power are making it harder to absorb higher costs.
“This dynamic situation is new to us: How long is diesel going to be over $6? How are we going to pass this along to customers?” Vojta said.
“It’s challenging — our customers are dealing with the same things we are.”
Beyond the economic fallout, the war has also produced a major civilian toll in Iran.
UN officials said attacks during the escalation caused significant civilian casualties and expressed particular concern over reports of strikes on schools, including the Shajareh Tayyebeh elementary school in Minab, where the UN later reported that 168 girls were killed.
A UN fact-finding mission subsequently concluded that there were reasonable grounds to believe the United States committed war crimes in strikes on the Minab school and a sports facility, citing attacks on civilian infrastructure and failures to adequately verify military targets.
The economic consequences and civilian losses have fueled wider criticism of the Trump administration's handling of international affairs, with the escalation of the war on Iran adding to disruptions in global energy markets, trade routes and supply chains while intensifying the humanitarian crisis.