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Impact of Rising Gas Prices on Small Businesses Amid War in Iran

3/25/2026, 9:14:05 PM

Surge in Fuel Costs Affects Local Businesses

Following the onset of the U.S.-led war in Iran in late February 2026, small business owners across the United States have reported significant increases in gas prices. Ondrey Lawson, co-owner of Phrostbite Italian Ice in Houston, Texas, experienced a dramatic rise in fuel costs, with the price for a tank of regular unleaded gas escalating from $70 to $90. This surge in gas prices has forced the Lawsons to adjust their business operations, including altering delivery routes and reducing employee hours to manage expenses.

Business Adjustments and Price Increases

In response to the rising fuel costs, the Lawsons attempted various strategies to mitigate the financial impact. They began scooping their own Italian ice instead of employing staff to serve customers, aiming to cut labor costs. However, as gas prices continued to climb, they ultimately decided to raise their prices to maintain profitability. Mia Lawson expressed the struggle they faced in absorbing costs, stating, “We wanted to absorb as many costs as we could. Finally, I had to give in.”

Broader Implications for Small Enterprises

The situation faced by the Lawsons is indicative of a larger trend affecting small businesses nationwide. Many entrepreneurs are grappling with the dual challenges of rising operational costs and the need to remain competitive in a volatile market. The increase in gas prices not only impacts delivery logistics but also affects consumer behavior, as higher prices may deter customers from purchasing non-essential items.

Official Statements & Responses

While specific government responses to the rising gas prices have not been detailed in the sources, it is evident that the economic ramifications of the conflict in Iran are being felt across various sectors. Small business owners like the Lawsons are calling for support and relief measures to help them navigate these challenging circumstances.

Criticism & Opposition

Critics of the U.S. military involvement in Iran argue that such conflicts lead to unintended economic consequences, including inflation and increased costs for everyday goods and services. This perspective highlights the interconnectedness of foreign policy decisions and domestic economic stability.

Conflicting Reports & Gaps

There is a lack of comprehensive data regarding the overall impact of the war in Iran on gas prices across the United States. While the Lawsons' experience reflects a significant increase in costs, further investigation is needed to quantify the broader economic effects on small businesses nationwide.

Verbatim Quotes

“Within a couple of days, things already started to skyrocket and get out of control,” — Ondrey Lawson, Co-owner of Phrostbite Italian Ice

“He and I both fought tooth and nail — we wanted to absorb as many costs as we could,” — Mia Lawson, Co-owner of Phrostbite Italian Ice

The ongoing conflict in Iran continues to shape economic realities for small businesses, underscoring the need for adaptive strategies in an unpredictable market.