How Attack on Iran Will Likely Impact U.S. Retailers

One of the first economic impacts of the U.S.-Isreali attack on Iran that started Feb. 28 could be seen in the form of rising gasoline pumps across America on Monday (March 2), the first workday since to the military action began. And that’s likely just the start.

“In the week ahead, gasoline prices are likely to face heightened upward pressure as seasonal trends continue and markets navigate this evolving geopolitical landscape, with the national average poised to reach the $3-per-gallon mark for the first time this year,” said Patrick De Haan, Head of Petroleum Analysis at GasBuddy, which continuously gathers pricing information from150,000-plus gas stations in North America.

Paying more for gas is especially difficult for many Americans, since buying fuel is not typically a discretionary expense, CNBC noted in a report on how rising gasoline prices from the conflict could impact the U.S. economy over time.

“[Higher gas prices are] particularly hard on lower-income households that spend a higher share of the budget on gas,” Mark Zandi, chief economist at Moody’s told the news service. “That’s the group that’s already under a lot of financial pressure.”

Further, Zandi said, “higher gasoline prices have an outsized impact because it hurts consumer sentiment. That affects their ability and willingness to spend, and that weighs on the economy.”

The experts all agree: Just how large the conflict’s impact will be depends on large part on how long the warfare continues – and that is a great unknown at this time.