Iran War Disrupts US Small Businesses

Supply chain issues, rising costs, and consumer pullback create challenges for entrepreneurs across the country

Apr. 5, 2026 at 6:55am

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The ongoing Iran war is causing significant disruptions for small businesses across the United States, with issues like shipping delays, skyrocketing costs, and reduced consumer spending. Owners of companies ranging from a pistachio farm to an electronics retailer are grappling with the fallout from the conflict, which is compounding the supply chain challenges they faced during the pandemic.

Why it matters

Small businesses are the backbone of the American economy, and the ripple effects of the Iran war threaten to undermine their recovery from the COVID-19 crisis. As shipping routes are disrupted, material costs surge, and consumer confidence wavers, entrepreneurs must find ways to adapt and stay afloat during this turbulent period.

The details

Pistachio grower Jared Lorraine of Nichols Farms estimates that $5 million worth of his company's pistachios were left stranded at sea when the Strait of Hormuz was effectively closed due to the conflict. Footwear brand Birchbury has seen shipping costs from Vietnam double to $7,000 per container, while delivery times have increased by 3-4 weeks. Landscaper Jake Wilson in Kansas City is stockpiling fertilizer to hedge against expected price hikes of up to 70% due to the Middle East's outsized role in global fertilizer exports. And electronics retailer Abt is considering ending its free shipping policy as fuel costs for its delivery fleet surge.

  • The Iran war began on February 28, 2026.
  • In the first three weeks of the conflict, Nichols Farms had $3.5 million worth of pistachios stuck on ships.

The players

Jared Lorraine

Chief operating officer of Nichols Farms, a fourth-generation owned pistachio grower and processor in Hanford, California.

Matthew Tran

Founder of Birchbury, a footwear brand based in Los Angeles that makes minimalist shoes in Vietnam.

Jake Wilson

Owner of Top Class Lawn Care, a lawn care business in Kansas City, Missouri that services nearly 400 properties.

Jon Abt

Co-president of Abt Electronics, a large electronics retailer in Chicago.

Brandon Fried

Executive director of the Airforwarders Association, a trade group for U.S. companies that move cargo through the supply chain.

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What they’re saying

“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.”

— Brandon Fried, Executive Director, Airforwarders Association

“While much of the public attention has been focused on oil, which is significant, really, the destruction of the food system is I think equally as serious.”

— Jared Lorraine, Chief Operating Officer, Nichols Farms

“They always say the wars are going to be short, but they're never short.”

— Matthew Tran, Founder, Birchbury

What’s next

Small business owners will continue to monitor the duration of the Iran conflict and its ongoing impact on their operations. Many are stockpiling critical supplies and rerouting shipments to mitigate disruptions, but prolonged issues could force them to pass on higher costs to customers or make difficult decisions about their business models.

The takeaway

The Iran war has exposed the vulnerability of small businesses to global supply chain shocks, underscoring the need for greater resilience and adaptability in the face of unexpected crises. As entrepreneurs grapple with this new challenge, policymakers and industry groups will likely focus on ways to support small firms and ensure they can weather the storm.