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Iran War Volatility Challenges Small Business: Expert Resilience Strategies

Oil prices spike to around $100 per barrel as the Strait of Hormuz remains disrupted, raising costs for small businesses nationwide.
The shutdown disrupts energy and supply chains, affecting trucking, fuel, and raw material costs for small operators.
Owners delay hiring and capital investments as price volatility persists, potentially slowing job growth.
Europe and Asia may face tighter supply chains, with American production possibly rebounding due to relatively stable domestic supply.
Small businesses should diversify suppliers and invest in automation to reduce labor risk and control inventory.
Maintain relationships with both banks and non-bank lenders to ensure access to working capital.
Lenders typically tighten standards during economic uncertainty, making flexible financing crucial for small firms.
The conflict's broader impact includes fertilizer, metals, and energy materials, affecting agriculture and manufacturing globally.
The article ties the energy shock to potential policy shifts, including renewed domestic production incentives.
Experts urge proactive financial planning to weather ongoing volatility and preserve operating margins.

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