Oil prices, supply chains, inflation — attacks on multiple suspected nuclear sites in Iran will have implications, but for how long, it’s hard to say.
The military actions of the U.S. in Iran will have domestic economic implications. The early reactions have already begun. Oil prices jumped by a few percent in the immediate response, but the question now is what happens with the economy?Energy Prices
Multiple market experts say that the initial oil price jump was to be expected. Brent oil closed on Friday at $77.01 a barrel. It opened on Monday, June 23, at $80.29. By midday, it was down to roughly $75. This is significantly up from a recent low of $62, however, over the last few years such prices haven’t been unusual.
Similarly, West Texas Intermediate closed last Friday at $73.84 and opened today at $77.96. At midday, it was under $70. Similarly, a price of $70.07, the low for Monday, is an average of the 52-week high and low.
However, these are the immediate responses. Many scenarios could potentially play out, altering everything.Iran Reactions
“Oil prices can go up if Iran retaliates by hitting neighboring oil lines,” says Babak Hafezi, an adjunct professor of international business at American University. “The Middle East produces an estimated 30.7 million barrels a day. If Iran bombs pipelines, we could see oil at $150 [a barrel]
Iran has already stuck a U.
