You’re already paying for Trump’s Iran war |
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You’re already paying for Trump’s Iran war
It won’t stop at the gas pump.
President Donald Trump continues to give mixed messages about the war in Iran. But what is clear is the impact that the conflict is already having on the US and global economies.
Oil prices, which briefly crested $100 a barrel on Monday, are higher than we’ve seen in years. People are already seeing the impact at the pump, with average gas prices above $3.50 per gallon. But the impact doesn’t stop there: It also means that the price of, well, everything, can go up.
Mike Bird, Wall Street editor for The Economist, told Today, Explained co-host Noel King that higher prices, if they endure, are likely to cause a problem for Trump and the GOP in the approaching midterm elections.
Below is an excerpt of Bird’s conversation with Today, Explained, edited for length and clarity. There’s much more in the full episode, so listen to Today, Explained wherever you get podcasts, including Apple Podcasts, Pandora, and Spotify.
Is the war in Iran already affecting the US economy?
Yes, is the short answer. Oil prices move very quickly to account for future conditions and current conditions, and that is fed almost immediately into gas prices. If you own a car, if you’ve been to fill it up recently, you will have noticed it was more expensive than the last time.
People who spend money on gas have less money to spend on other things. That also feeds into all manner of other........