Tariffs were already squeezing small businesses. Now the Iran conflict is pushing them to the brink as rising oil prices boost shipping costs

Three weeks into the Iran war, small businesses are starting to feel the pressure of the conflict, and experts say the worst may still be yet to come. 

Following the initial strikes on Iran in late February, U.S. businesses have been directly affected by the war in the form of shipping disruptions and skyrocketing oil prices, which have led to higher gas prices. 

These obstacles come as small businesses have over the past year dealt with the whipsaw of President Trump’s tariff policies. Sweeping tariffs on goods from China, Canada, Mexico, and the European Union, among others, have driven up input costs and squeezed profit margins for small business owners who often lack the purchasing power and legal resources of large corporations. 

Unlike larger corporations who, at least in the short term, can absorb higher costs and shipping upheaval caused by the Iran war, smaller businesses are especially at risk, said Brett Massimino, an associate professor at Virginia Commonwealth University’s business school and chair of the department of supply chain management and analytics. 

“Small businesses, they don’t have the margins or the reserv...