{"id":1298658,"date":"2026-05-11T11:57:28","date_gmt":"2026-05-11T17:57:28","guid":{"rendered":"https:\/\/www.reporterherald.com\/?p=1298658&preview=true&preview_id=1298658"},"modified":"2026-05-11T12:06:00","modified_gmt":"2026-05-11T18:06:00","slug":"economic-outlook-iran-war","status":"publish","type":"post","link":"https:\/\/www.reporterherald.com\/2026\/05\/11\/economic-outlook-iran-war\/","title":{"rendered":"Businesses are facing rising costs during the Iran war, and economists expect more strains ahead"},"content":{"rendered":"

By WYATTE GRANTHAM-PHILIPS, AP Business Writer<\/strong><\/p>\n

NEW YORK (AP) \u2014 Costs are piling up for businesses during the U.S. and Israel\u2019s war against Iran<\/a> \u2014 and many economists see a bleak outlook, with some bracing for a downturn in hiring and investment in the coming months.<\/p>\n

Nearly half of American business economists who responded to a survey by the National Association for Business Economics say that the conflict has negatively impacted their operations, according to a report released<\/a> Monday, and most (54%) say they\u2019ve been affected by rising energy prices. More than two-thirds reported steeper material expenses over the last three months, the highest level NABE has seen since July 2022.<\/p>\n

The Iran war, which began with U.S. and Israeli attacks on Feb. 28, has plunged the world into an energy crisis<\/a>. Crude oil costs continue to rise amid Washington and Tehran\u2019s ongoing standoff<\/a> in the Strait of Hormuz \u2014 worsening price spikes for companies and households<\/a> around the globe. As fuel gets more expensive, transportation costs are eating further into businesses\u2019 everyday operations. Supply disruptions for a range of other necessities, including fertilizer<\/a>, are also causing growing strain.<\/p>\n

Consumers are footing more and more of that bill as businesses pass higher costs to their shoppers, beyond the immediate sticker shock at the gas pump<\/a>.<\/p>\n

Nearly half (48%) of NABE\u2019s survey respondents \u2014 who are economists from businesses, trade associations and academia \u2014 indicated that their firms were passing on at least some cost increases to customers, which is actually down from 60% in January. But NABE found that a growing number (16%) also expect to raise prices over the next six months, while none plan to lower prices.<\/p>\n

Most of the respondents say their firms are seeing strong sales now and have stable profit outlooks. That falls in line with what traders are more widely feeling on Wall Street, where eye-catching earnings from companies ranging from tech to big oil have helped propel markets<\/a> to near-record highs recently.<\/p>\n

Still, only 13% of the NABE survey\u2019s respondents said they expect their profits to rise in the near future. NABE says that\u2019s the lowest share it\u2019s seen since 2023.<\/p>\n