How the Middle East Conflict Will Hit Americans’ Wallets

The ongoing U.S. and Israeli attacks on Iran “is not a distant geopolitical shock for U.S. households –it reaches everyday life through fuel, freight, fertilizer, petrochemicals and global supply chains through factories that produce consumer goods.” That’s the view of Vidya Mani, Associate Professor of Business Administration at University of Virginia, writing on The Conversation.com, which dubs itself as a site of academic rigor and journalistic flair.

Here’s an excerpt from Mani’s article on all the various ways she sees the Iran conflict impacting American consumers:

“Some mitigation is possible: 32 nations will be releasing more than 400 million barrels of oil to the global market over the next few months. There are pipelines and alternative ports in Saudi Arabia and the United Arab Emirates that, if they remain undamaged and uninterrupted, can handle potentially 40% of the 20 billion barrels per day that was passing through the Strait of Hormuz.

“Combined with a temporary easing of sanctions on Russian oil, limited shipments to India and China through the Strait of Hormuz and the March 23 announcement of a five-day pause on U.S. and Israeli strikes on Iran, it is possible to head off the worst-case scenario.

“But these measures cannot fully replace the strait’s normal oil and LNG shipment volume. And if oil production, refining and shipment locations continue to be targeted, recovery can be expected to stretch into many months. The likely result is broader inflation, prolonged shortages and longer waits for goods of all sorts, including food and packaging as well as electronics and appliances.”

Click here to read Mani’s full article.