How Americans Are Feeling the Economic Effects of the War With Iran

Less than two weeks after U.S. and Israeli forces attacked Iran, the article reports Americans are already feeling economic effects: gasoline prices have risen, food prices are likely to increase, and stock-market volatility could threaten retirement savings.

“War in theMiddle East Advertisement Supported by Gas prices are rising, with the cost of food likely to follow”

New York Times

President Trump initially said the war would last 'four to five weeks,' but the article says he has recently sent mixed signals that it could become a prolonged fight.

New York Times

Experts warned that a longer conflict could prompt consumers to cut spending and businesses to slow hiring or lay off workers, magnifying fallout for the broader economy.

The average price of gasoline in the United States hit $3.48 a gallon on Monday, according to the AAA motor club.

That is a nearly 17 percent increase since the first U.S.-Israeli attacks on Iran on Feb. 28.

New York Times

Diesel prices have risen 24 percent since the start of the war, to nearly $4.66 a gallon.

Mark Zandi, chief economist at Moody's Analytics, told the paper that higher diesel and oil costs could raise the price of goods shipped by truck, including Amazon packages and food.

The international benchmark oil price briefly jumped to almost $120 on Monday before ending the day below $90 after Mr. Trump made remarks suggesting a shorter conflict.

Mr. Zandi said that if the price settles at about $95 a barrel, a gallon of regular gas could hit $3.75 or $4 by next week.

He added, 'There is already significant, serious fallout for the war.'

The article attributes energy-price spikes in part to the war throttling ship traffic in the Strait of Hormuz, the narrow waterway off Iran's southern coast where about one-fifth of the world's oil is transported.

“War in theMiddle East Advertisement Supported by Gas prices are rising, with the cost of food likely to follow”

New York Times

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