U.S.-Iran war ‘tax’ begins to hit American businesses and consumers

https://www.cnbc.com/2026/04/04/us-iran-war-gas-prices-diesel-jet-fuel-economy-consumer-tax.html > Nick Friedman, co-founder of Tampa-based College Hunks Hauling Junk and Moving, says his business has been facing multiple headwinds. High mortgage rates have dampened the real estate market, while rising insurance premiums are eating into operating costs. Now there’s the U.S.-Iran war and a surge in diesel fuel prices that is eating into profit margins. Yet, he doesn’t feel like he can raise prices. “We are in a bit of a Catch-22,” said Friedman. “Our fear would be if we start raising prices it will hurt our customers.” > Bigger companies, he says, can probably get away with adding fees. As rapidly rising fuel costs are cascading across the American economy, that is exactly what some are doing. United Airlines and JetBlue both raised prices on baggage this week. Amazon announced a 3.5% “fuel surcharge” on sellers. Amazon described the surcharge as “meaningfully lower” than levies applied by other major carriers in a statement to CNBC. JetBlue said as operating costs rise, it “regularly evaluates how to manage those costs while keeping base fares competitive and continuing to invest in the experience our customers value.” > Friedman says that historically, fuel has taken 3 to 5 percent of revenue as an expense line item, but has doubled to 6 to 10 percent since the war started. “It is very difficult from a business perspective,” Friedman says. Hunks runs on a franchise model with over 200 locations, putting many franchisees in precarious positions. > Unlike past economic shocks to the system, such as the Great Recession or Covid, there will be fewer tools for the government to use to lessen the blow for businesses and consumers. “Policy is likely not riding to the rescue like it did during the Covid era,” Vanderburg said.