The U.S. and Israeli attacks on Iran have raised oil prices, potentially leading to higher prices at the pump, with economists suggesting that a longer war could worsen inflation and slow growth.
A sustained conflict could push oil prices past $100 a barrel, leading to higher gas prices in the U.S. and accelerating inflation while impacting economic growth.
While some inflation measures have cooled, the Federal Reserve's preferred measure has remained around 3%, above the 2% target, and rising gas prices could also affect airfares and shipping costs.
Natural gas prices have also increased due to disruptions in the Strait of Hormuz, potentially raising heating prices in the U.S., but the economy is less oil-dependent than in the past.
A prolonged conflict in Iran could dampen business confidence, leading to reduced investment and hiring, similar to the impact of Trump's tariffs, potentially affecting Americans' perception of his economic leadership.
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