It’s unclear how long the U.S. and Israel-Iran war is going to last or how far it’s going to go. President Trump has suggested there are four to five weeks of combat ahead — but that
he’s prepared to go longer.
With a lot of unknowns, it’s hard to know exactly how this conflict is going to play out in the economy here in the U.S. But experts say war with Iran could raise prices on goods including gas and groceries.
One thing that is tangible: The average price for a gallon of regular gas is
just shy of $3 right now, according to AAA. Tom Kloza, chief analyst at Gulf Oil, said that will go up a bit.
“It looks like we’re gonna go in relatively short order to about $3.10 to $3.25,” he said.
Some of this is seasonal and expected. But if the conflict with Iran continues deeper into March and April, Kloza said prices might peak as high as $3.50 a gallon.
“It very much is the rocket and feather. Prices go up like a rocket. If this is all over with in a few months they’ll come down like a feather,” he said.
So, a few months of temporary pain to the wallet.
Mark Zandi, chief economist at Moody’s Analytics, said that’s enough to make consumers — who are already price-sensitive after years of inflation —
even more nervous.
“The only thing where prices really have not risen significantly and really aren’t bothering people is the cost of buying a gallon of regular unleaded,” he said.
“I think I’d be worried about what kind of impact this might have on the collective psyche,” Zandi said.
