The tensions in the Middle East continue to escalate and have already reached a boiling point. And as if the average Americans don’t have enough to deal with on a day to day basis under the authority of Joe Biden, this Middle Eastern conflict is about to hit them all where they hurt the most right now.
It is clear that if the conflict between Israel and Hamas continues to escalate, it could have devastating economic consequences on both the global economy as well as Americans. Experts warn of possible oil price spikes, higher inflation rates, and a potential U.S. recession due to heightened instability in the Middle East.
Should the crisis become region-wide and involve Iran, there would be serious repercussions for American households in particular. According to Desmond Lachman from the American Enterprise Institute, “the way that the Israel-Hamas crisis affects U.S. households depends very much on how the conflict evolves”.
This is a worrying possibility as Iran has already undertaken drone attacks against bases hosting US troops since October 17th with military leaders believing they are aiming to provoke US into open war – a move which would only further destabilize the region.
Watch Americans reaction to being asked to fight alongside Hamashttps://t.co/N5U5vWtWnI
— Daily Caller (@DailyCaller) October 27, 2023
The recent expansion of BRICS-11 nations – including Brazil, Russia, India, China and South Africa alongside Iran, Saudi Arabia, UAE Argentina Egypt and Ethiopia – means that many countries are now aligning themselves against Western influence in this conflict (DCNF). This spells trouble for US consumers who may face rising gasoline prices due to increased oil prices alongside reduced availability of goods imported from countries such as China or Brazil.
Although inflation had decelerated down to 3.7% in August 2022 after peaking at 9% earlier in June 2022 (Bureau of Labor Statistics), such an escalation could potentially undo any progress made by Federal Reserve interest rate hikes which recently reached 22 year highs at 5%.