Black Country firms warn of rising costs and disruption from Iran crisis
27 May 2026
Published in: Black Country Chamber of Commerce News
Three-quarters of West Midlands business report an existing or expected impact from the Iran conflict
Black Country firms are being 'hit from every direction' as three-quarters of West Midlands businesses report an existing or expected impact from the Iran conflict.
Increased fuel prices and shipping costs, rising prices from suppliers and customer delivery delays are the major challenges facing businesses according to the data gathered by the Greater Birmingham, Black Country and Coventry & Warwickshire Chambers of Commerce.
The results of a survey of more than 120 businesses across the West Midlands Combined Authority area showed 49 per cent said they are already impacted by the unrest in the Middle East, while 26 per cent expect to be in the future.
Sarah Moorhouse, chief executive of Black Country Chamber of Commerce, said businesses across Wolverhampton, Dudley, Sandwell and Walsall were being hit from every direction.
"We have members forecasting energy bill increases of 77 per cent this year, others facing half a million pounds in additional costs on top of escalating logistics charges," she said.
"The conflict is piling pressure on businesses that were already struggling. Black Country manufacturers, retailers and service firms alike are reporting rising costs, supply chain disruption and growing uncertainty.
"Our members are asking for help with fuel and energy costs and to be kept informed — that is not a lot to ask when you are fighting to keep your doors open."
Black Country businesses responding to the survey described rising material and delivery costs, fuel surcharges and, in one case, concerns over chlorine shortages affecting a swimming company's ability to operate.
The most impacted sectors were manufacturing and production (23 per cent); hospitality, catering and tourism (11 per cent); admin, support and consulting (11 per cent); and retail and wholesale (7 per cent).
The majority of organisations expect their energy bills to increase in the next year, with 43 per cent anticipating rises of more than 20 per cent, and 30 per cent expecting it to be "fairly difficult" to pay their bills.
One SME wholesale business said: "We are experiencing fuel surcharges on sea freight containers and UK haulage and material cost increases in the Far East and India."
A micro hospitality firm added: "The war has left clients in an unsure situation, where they do not want to travel because of uncertainty. Repatriation admin costs are borne by the company, refunds are processed, so there is a loss of profits."
Consulting firms and other service-based organisations described cancelling or postponing overseas training courses, interruptions to ongoing projects and increasing difficulty completing business transactions.
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