Economists warned the U.S. economy will struggle in the coming months as the Iran war drives up oil prices through Strait of Hormuz blockade disruptions.
Rising fuel costs threaten both consumers and businesses with thin profit margins.
Stew Leonard, owner of a $500 million-plus grocery chain, reported suppliers demanding fuel surcharges while resisting consumer price increases.
KPMG chief economist Diane Swonk noted that cost increases will either be passed to consumers or squeeze profit margins and employment. While logistics expert Satish Jindel warned that lower-value products face the steepest price increases as businesses lack sufficient margins.
Online retailers face particular challenges, as customers abandon purchases when charged delivery fees exceeding five dollars. Supply chain disruptions combined with energy cost inflation threaten widespread economic pain affecting both retail and e-commerce sectors.
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