For subscribers
How war in the Persian Gulf could spill into the US economy
Sign up now: Get ST's newsletters delivered to your inbox
Smoke rises in an oil industry zone in Fujairah, United Arab Emirates, following a fire caused by debris amid the US-Israel conflict with Iran.
PHOTO: REUTERS
Lydia DePillis
- US/Israeli attacks on Iran have caused an oil price shock by disrupting oil supplies, with tankers stranded and key facilities shut down, leading to rising fuel prices.
- Trade frictions are increasing because of uncertainty caused by the war potentially delaying shipping companies' plans and clouding importers' decisions for the holiday season.
- The US faces risks from high debt, reliance on a single sector for economic growth, and a potentially overvalued stock market, increasing the risk of economic trouble.
AI generated
Three kinds of events have historically pushed the United States into recessions: financial crises, oil price shocks and pandemics.
The US and Israeli attacks on Iran have already brought about the second circumstance
