The U.S. economy right now is like the hero of an action movie in the last few minutes: bloodied, but resilient.
After facing everything from stubborn inflation to sweeping global tariffs to a record-breaking government shutdown, America has somehow managed to avoid a recession and soldier on. The labor market, though, is showing bruises as U.S. employers reported cutting 92,000 jobs in February.
But, as in an action movie, the economy is now up against its biggest foe yet: a costly war in Iran, a regional power in the Middle East that just happens to sit next to what is arguably the world's most critical maritime energy chokepoint.
The blows are already coming. The war is costing the U.S. an estimated $1 billion a day, according to two congressional sources with knowledge of the matter. Oil prices are now forecast to go higher, while gas prices have already jumped to $3.32. It's the highest price it has reached in either of Trump's two terms. The situation is so in flux that gas prices are poised to climb higher than that after this article is published.
The knock-on effects of increasingly expensive oil will be felt next. This is a preview of Joseph Zeballos-Roig's latest column. Read the full column here. |
