How the Iran war is expected to affect US prices, from gas to flights
📖 Full Retelling
<p>Oil is used to power the supply chain, from machines that manufacture a cell phone to diesel that powers a truck</p><p>Fertilizer. Phones and laptops. Flights. These are just some of the products made from or powered by crucial materials that ship through the strait of Hormuz, which still remains effectively closed due to the US-Israel war on Iran.</p><p>As the war approaches its fifth week, global oil shortages are forcing countries to <a href="https://www.wa
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
How the Iran war is expected to affect US prices, from gas to flights Oil is used to power the supply chain, from machines that manufacture a cell phone to diesel that powers a truck F ertilizer. Phones and laptops. Flights. These are just some of the products made from or powered by crucial materials that ship through the strait of Hormuz, which still remains effectively closed due to the US-Israel war on Iran. As the war approaches its fifth week, global oil shortages are forcing countries to take severe measures to save their reserves as Iran continues to block oil shipments. Even if a deal to end the conflict is reached soon, unwinding the damage will take months. US gas prices have reached their highest level in years, but the change in oil prices aren’t just impacting drivers: Oil is used to power the supply chain, from the machines that manufacture a cell phone to the diesel that powers a truck carrying it to a store. The price increases come as many Americans are already strained by rising housing costs, grocery bills, and electricity statements. A Gallup poll released last week found that a third of Americans skipped meals and forewent other needs to afford their healthcare. Here’s how the conflict with Iran is expected to affect prices. Oil and gas The average cost of gas in the US has jumped about 30% over the last month, with the national average hitting $3.97, the highest since 2023. But diesel, which fuels many of the trucks that transport goods across the nation, has increased even further – by about 50%, or about $1.69 more than it did a year ago, according to data from AAA. Higher diesel costs could soon affect transportation costs and, in turn, the cost of groceries as roughly 85% of agricultural goods are transported by trucks. Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, a progressive policy group, said that the impact of oil and gas shortages on the supply chain can be categorized as first-order effects or second-o...
Read full article at source