Price of war: How the conflict with Iran is hitting the US economy

ONE and a half weeks into the US-Israeli military campaign against Iran, the economic tremors are already being felt by ordinary Americans, at the gas pump, in the grocery store, and in the anxious swings of financial markets. While the full damage won’t be clear until the dust settles, early indicators paint a sobering picture.

The most immediate and visible impact has been at the fuel pump. Petrol prices in the US soared to US$3.20 a gallon within days of the conflict’s start, flashing a warning sign for the nation’s economy.

US consumers are seeing prices rise US$0.05 to US$0.10 per gallon daily, and those increases ripple far beyond the forecourt. Higher fuel costs mean more expensive goods on the shelves, more expensive airline tickets, and more expensive freight – ultimately, a tax on virtually everything Americans buy.