U.S. economic rebound bypasses small businesses as Iran war lifts costs and dims rate-cut hopes

The prolonged U.S.-Iran conflict has lifted fuel and material costs, contributing to faster inflation and weakening expectations for additional interest-rate cuts before year-end. That shift has intensified pressure on small businesses, pushing sentiment down to its lowest level since Donald Trump was elected to his second term. Although U.S. and Iranian officials announced a preliminary ceasefire deal on Sunday, the economic fallout is expected to persist.