NABE Economists See 24% of Firms Cutting Hiring as Iran War Lifts Energy Costs
Updated
Updated · The Associated Press · May 11
NABE Economists See 24% of Firms Cutting Hiring as Iran War Lifts Energy Costs
10 articles · Updated · The Associated Press · May 11
Nearly 24% of surveyed economists said their firms plan to scale back hiring and investment within six months as war-driven cost pressures build.
54% reported being hit by higher energy prices, and more than two-thirds saw material costs rise over the past three months — NABE's highest such reading since July 2022.
48% said firms are already passing at least some higher costs to customers, while 16% expect to raise prices in the next six months and none plan cuts.
Only 13% expect profits to rise soon, the lowest share since 2023, even though most respondents still reported solid current sales and stable profit outlooks.
50% now see better than a 25% chance of a U.S. recession within a year, up from 44% in January, as the Strait of Hormuz standoff keeps oil and transport costs elevated.
As the Hormuz closure cripples trade, which developing nations are most at risk of economic collapse from the energy crisis?
Will this historic oil crisis finally force a global pivot to renewable energy, or entrench fossil fuel dependency further?
With U.S. mine-clearing capabilities reduced, how can the Navy realistically secure the world’s most critical oil chokepoint?
The 2026 Iran War and Its Economic Shockwaves: Energy Disruption, Inflation, and Global Supply Chain Risks
Overview
The Iran War triggered major global disruptions, starting with the blockage of the Strait of Hormuz, which caused a severe energy supply crisis. This crisis led to rising gas prices worldwide, directly impacting households—especially in the United States—by increasing living costs and fueling economic unease. The situation was made worse as job growth was limited to a few industries, prompting many people to cut back on spending. Businesses, facing higher costs, passed these increases on to consumers, adding to the financial strain. These interconnected effects highlight how a single conflict can ripple through energy markets, household budgets, and the broader economy.