The Iran War Is Driving Up Shipping Costs, Hitting Main Street at the Mailbox

The Iran war is pushing oil prices higher, which in turn is raising shipping rates — leaving small businesses to absorb higher costs from USPS and private couriers alike.

In late April, the USPS temporarily implemented an eight percent price increase across various shipping products including priority mail and parcel select. The hikes are expected to last until January 17, 2027.

Now some founders are left grappling with how to offset the new costs of shipping.

Cutting free shipping and raising shipping costs are rarely a company’s first choice, so many founders have to get creative. Prakash’s company has partnered with what’s known as “zero fill stores,” which allow customers to visit brick-and-mortar entities to re-up on a company’s product with their own containers.

For now, that’s cushioning the blow—but if the Iran war drags on and fuel costs keep climbing, Prakash says the math will need to be revisited.