PNN – An American media outlet reported on the severe economic pressures on Americans as a result of the war with Iran.
According to the report of Pakistan News Network, in light of the ongoing early consequences of the war for Americans, the American newspaper Washington Post reported that the economic impact of the war with Iran could be worse for Americans even if a ceasefire is reached in recent weeks, and some economic problems will continue for months.
According to the report, early indicators point to this impact, as Amazon has imposed additional fuel costs for e-commerce order deliveries, mortgage rates have reached their highest level in the past seven months, and consumers are expected to soon face increases in the price of soda and laundry detergent.
The Washington Post emphasized that so far, the costs of the joint US-Israeli military operation against Iran seem insignificant compared to the economic turmoil in Asia, with continued strong US growth. However, rising energy costs, interest rates and supply shortages are warning signs of what could be worse.
According to the report, an Ipsos poll conducted on March 31 found that 56 percent of Americans expect the war to be more economically damaging for Americans, with the war having a primarily negative impact on their personal finances. The continued conflict is also likely to lead to a wider wave of price increases and disruptions in supply chains from Asia and Europe to the United States.
The American newspaper quoted New York-based analyst Rachel Zimba as saying: I don’t think the United States is exempt from this (economic consequences of the war). These are global markets, and experts’ concerns have increased as the war unfolded.
Meanwhile, US President Donald Trump has signaled a possible end to the war later this month, while oil prices are reflecting investors’ expectations for a return to stability by mid-summer, despite ongoing risks, especially after reports that a US F-15 fighter jet was shot down by Iranian fire and an Iranian missile hit a desalination plant in Kuwait, the Washington Post reported.
According to the report, the International Energy Agency warns that Iran’s blockade of the Strait of Hormuz is the biggest energy shock in history, while Bloomberg Economics predicts that oil prices could rise to $170 a barrel if shipping is halted for three months. Oxford Economics believes that a six-month war could plunge the global economy into recession.
In fact, the closure of the Strait of Hormuz has led to the loss of hundreds of millions of barrels of oil, the effects of which are felt first in Asia and then in Europe. Given the long transit times, these consequences are expected to reach the United States later.
A report from JPMorgan Chase suggests that while the United States, with the exception of California, will be less affected by the supply shortage, prices are expected to rise significantly. Robert McNally confirmed this, stating that the impact will be more in the form of “price shocks.”
The impact has also spread to global supply chains, disrupting the transportation of vital commodities such as aluminum and helium. Exporters have faced a shortage of refrigerated shipping containers, which have piled up in the Persian Gulf.
Internationally, world leaders warned of serious consequences, and financial markets in Asia and Europe suffered heavy losses.
Meanwhile, pressure is also mounting domestically in the United States, where fuel prices have risen as bond yields have risen on fears of inflation and mortgage rates have reached 6.46 percent.
Bank of America estimates that inflation could hit 4 percent in the coming months, up from 2.8 percent currently. It will also lead to a massive increase in commodity prices as the closure of the Strait of Hormuz continues to affect global industries, particularly petrochemicals.
In this context, South Korea’s Yucheon NCC declared a state of emergency due to disruptions in the supply of raw materials, while industry officials warned of an imminent wave of price hikes.
In addition to the global helium shortage, the consequences have also affected the agricultural and fertilizer sectors, and the effects are expected to last for years.
The aviation sector was among the first to be affected by the war, with European airports preparing contingency plans for jet fuel shortages, while Ryanair has warned of the potential cancellation of up to 10% of its summer flights if the Strait of Hormuz remains closed.