Fed's Beige Book: Iran war has businesses on edge

The Fed’s Beige Book (April 15, 2026) reports that overall U.S. economic activity grew at a “slight to modest” pace but that the Iran war has heightened business unease by driving energy prices higher. A spike in oil has raised freight, shipping and petrochemical costs (plastics, fertilizers), prompting some firms to raise prices or add surcharges; tariffs are also lifting metals costs. Retailers warned they may pass higher fuel and shipping costs to consumers. Oil producers remain cautious on drilling despite higher prices, and some districts see rising demand for temporary workers while AI has so far only modestly affected staffing. The report signals inflationary pressure from energy and tariff channels, creating mixed implications for margins, consumer prices and commodity demand.