Gas-price shock drags down small-business profits amid energy risk

A Bank of America Institute report shows April small-business profitability fell 1.3% (the largest decline in two years) as fuel costs surged after Iran’s conflict disrupted the Strait of Hormuz. Gas averaged $4.53 and was up 43% year over year, with gasoline expenses for small firms up 31%. Despite solid consumer spending, small-business sales are slowing. Separately, Americans continued starting new businesses at near-record rates in 2025 (about 470,000 monthly applications, roughly 66% above pre-pandemic levels), underscoring enduring entrepreneurial energy even as inflation and energy costs weigh on the landscape.