US strikes on Iran could hit American economy at a fragile time
The U.S. attack on Iranian nuclear sites over the weekend could ratchet up the pressure on an American economy that’s turned increasingly fragile as a weekslong global trade war takes a toll.
America’s entry into what had been attacks between Israel and Iran is most likely to impact oil prices, investors said, which could ripple through the economy by causing higher transportation and gas prices, just as overall inflation throughout the economy has seemed to be contained.
Energy analyst Rachel Ziemba told USA Today on June 22 oil prices may not trade much higher until and unless there’s a sustained supply shock, like Iran deciding to block the crucial Strait of Hormuz. Iran's parliament on June 22 reportedly approved a measure endorsing exactly that, though whether it happens comes down to Iran's Supreme National Security Council.
Ziemba calls that a “low probability, high impact” risk – and one that commodities traders will likely struggle to price. That means energy prices may be volatile until conditions settle down – even as summer vacations start in earnest and a massive heat wave grips the central and eastern parts of the country.
https://finance.yahoo.com/news/us-strikes-iran-could-hit-194533580.html
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