Economists have warned that the U.S. will stagger economically into the next month as the war with Iran causes ongoing financial trouble.
It is not just consumers queuing up at gas stations set to be affected by the economic crunch, but businesses that are trying to keep their margins as thin as possible. Oil price rises as a result of the blockage in the Strait of Hormuz and ongoing war with Iran will affect shipping and logistics for many companies, experts have warned. These costs will likely be passed onto the consumer.
Stew Leonard, owner of an East Coast grocery chain with annual sales of more than $500 million, told CBS New he's expecting it to be harder still to balance the books the next month.
"Stew Leonard's has not felt the impact of rising oil prices, but our farmers, ranchers and fishermen are knocking on the door right now with fuel surcharges," Leonard said. "We're caught between a rock and a hard place.
"Customers are already feeling the pain of food, energy and insurance bills in their personal lives, and I'm going to resist raising prices until the cows come home," he added.
Diane Swonk, chief economist at KPMG, said that "all of those shifts are adding to costs, a portion of which will be passed along to consumers. The costs that are not passed along show up as a squeeze in profit margins and employment."
Logistics expert Satish Jindel of ShipMatrix believes lower-value items will be affected most of all by the economic stagnation, with businesses potentially raising the price on usually cheap products.
"They don't have enough in margins — they'll need to raise prices," Jindel said. Despite the price rise for in-store items, online shopping may suffer worse than stores.
"Most people ordering online, they expect normal delivery for free — the moment you ask them even for five dollars, they will abandon the cart," Jindel said.