Business Owners Everywhere Can’t Escape Iran War’s Ripple Effects
From lost income to worsening inflation, small and midsize operators around the globe are feeling the pain.
Habibi Ibrahim on his farm in northern Nigeria.
Photographer: Moha Sheikh for Bloomberg BusinessweekSoaring diesel prices in the US. Travel disruptions in Europe. Fertilizer shortages across Africa. A fuel squeeze in Asia. In addition to widespread loss of life and the destabilization of an entire region, the US and Israel’s war with Iran has triggered the worst energy shock in decades and set into motion shipping bottlenecks to rival those of the Covid-19 pandemic.
Few prices, supply chains and industries have been left untouched by the conflict in the Middle East. For some people, that means a hit to income; for others, a shortage of household staples and agricultural inputs. And for just about everyone, it spells inflation—on everything from food and fuel to furniture and flights. “It’s been very painful,” says Kenneth Rogoff, a professor of economics at Harvard University and a former chief economist for the International Monetary Fund. “Oil prices factor into everything.”