💨 Abstract

This article discusses potential economic impacts of an escalating conflict in the Middle East, particularly between Israel and Iran, on the U.S. economy. While Federal Reserve Chair Jerome Powell believes that effects on inflation may be temporary, economists warn of significant risks, including disruptions in oil supply through the Strait of Hormuz, which could lead to higher energy costs and decreased consumer spending. The U.S., though energy-independent, could still face increased gas prices.

Courtesy: WTOP Staff