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Will the rise in oil prices drive up inflation? Experts weigh in
Oil prices surged over 30% in a month due to fears of a Strait of Hormuz blockade, raising gasoline to $3.53 and diesel to $4.78 per gallon, analysts said.
- On Tuesday, U.S. and Israel initiated a war with Iran that pushed global oil markets higher, with U.S. crude at about $86 per barrel after a 17% drop, yet prices have surged more than 30% since a month ago.
- The U.S. military, Gen. Dan Caine, said it is exploring escorts for ships as Saudi Aramco warned of catastrophic consequences if tanker traffic in the Strait of Hormuz does not resume.
- Gasoline and diesel prices jumped sharply, hitting household budgets and transport costs as U.S. gasoline rose to $3.53 on Tuesday from $3.10 a week earlier, and diesel climbed to $4.78 from $3.65 a month earlier.
- Experts warned that prolonged high oil would squeeze households, with Omair Sharif stating 'It will really start to eat into disposable income for consumers if it persists for several months.'
- A swift reopening of the Strait of Hormuz could return prices to pre-war levels, analysts said, while Macquarie global strategists warned that 'energy price shocks transmit into production costs across virtually every sector', and Sharif said, 'Forecasts are being updated day to day.
13 Articles
13 Articles
Inflation report to be released as Iran war sends gas prices surging
President Donald J. Trump disembarks Marine One at Valley International Airport in Harlingen, Texas Tuesday, Jan. 12, 2021, and boards Air Force One en route to Joint Base Andrews, Md. (Official White House Photo by Shealah Craighead. Via Flickr) (NEW YORK) — An inflation report to be released on Wednesday will provide the latest measure of price increases as the U.S.-Israeli war with Iran drives up gasoline costs and renews concerns about affor…
Texas oil companies stand to profit from Iran war disruptions while consumers face higher gas prices
Texas’ status as the nation’s largest oil producer will partially insulate its residents from some gas price hikes, but it’s not immune to disruptions, experts say.
How high will the U.S.-Israel war with Iran push gas prices?
Oil and gas prices are rapidly rising around the world amid the U.S.-Israel war with Iran. Andrew Chang explains what's driving the surge and why predicting the next moves in the oil market is so difficult. Images provided by The Canadian Press, Reuters and Getty Images
The Iran war is causing energy prices to rise. This brings back memories of the 2022 price shock. Economists warn of an inflation surge in Europe. The ECB should react quickly. By Angela Göpfert.
U.S. stock exchanges open with a mixed tone on Wednesday as investors assess the surge in energy prices caused by the war in the Middle East, a factor that has overshadowed an inflation figure in the U.S. that, under normal conditions, would have been positively received by the market.See more: Iran's war unleashes the biggest oil shock in history and projects prices from US$150 to US$200The S&P 500 rose 0.19% but the Dow Jones fell 0.07% in the…
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