U.S. economy is showing the strain from Iran war as nearly 3-month conflict drags on

The MarketWatch piece says the nearly three-month Iran war is straining the U.S. economy by lifting inflation, raising business costs and eroding demand. S&P Global surveys showed the U.S. services index slipped to 50.9 (from 51.0) while manufacturing rose to 55.3 (from 54.5), with firms citing higher input costs (largest increase since 2022) and softer new orders for services. Employment fell in May for the second time in three months. Higher oil prices and commodity shortages have forced companies to consider price hikes or job cuts and make further Fed rate cuts unlikely. Markets reacted with the S&P 500 and Dow Jones slipping on Thursday, reflecting growing recession risk amid persistent inflation and geopolitical uncertainty.