TEHRAN- Since the outbreak of the joint US-Israel war against Iran on February 28, American factories have faced severe cost pressures.

The conflict’s most immediate impact has been on energy markets: the price of crude oil has jumped more than 50%, directly raising expenses for fuel, transportation, and petrochemical-based raw materials used across manufacturing sectors.

This supply shock is now showing up clearly in industry data. In a survey by the Institute for Supply Management (ISM) of American manufacturers released on Friday, concerns about the war were the main focus of their comments. 

The ISM Manufacturing Business Survey Committee Chair, Susan Spence, quantified this anxiety: among all manufacturer feedback, the war was mentioned in 47 percent of comments, far outpacing concerns about tariffs (18 percent).

The most alarming figure from the report is the ISM Prices Index, which surged to 84.6 in April—its highest level since April 2022. 

Reports attributed this sharp rise directly to supply disruptions from the conflict, particularly the closure of the Strait of Hormuz which has choked global oil flows. As a result, overall production costs in the US hit their highest level in four years during April.

The damage has not been limited to energy. Donald Trump’s import tariffs have also remained a limiting factor and have contributed to rising factory gate prices. Manufacturers now face a double squeeze: higher costs for imported components due to tariffs, and skyrocketing energy expenses due to war. 

Several firms surveyed by ISM warned they are either absorbing shrinking profit margins or passing costs to consumers, fueling broader inflationary pressures. 

With no end to the conflict in sight, American factories brace for sustained financial pain, weakened global competitiveness, and the risk of production cutbacks. The war with Iran has proven to be a direct blow to the industrial heartland.