economy
March 10, 2026
As Iran war disrupts oil prices, consumers could be 'hammered,' economist says
The Iran war may impact U.S. consumers far beyond the gas pump, raising inflation expectations and causing an uptick in the yield on the 10-year Treasury note.
TL;DR
- The U.S.-Iran war has led to a significant disruption in oil supply and a surge in crude prices.
- Higher energy costs are raising inflation expectations and increasing the yield on the 10-year Treasury note, affecting mortgage and loan rates.
- Consumers were already facing affordability concerns, which are expected to worsen due to the rising cost of living.
- Experts predict that sustained high oil prices could lead to gasoline prices nearing $4 a gallon, accelerating inflation and impacting consumer spending.
- The Federal Reserve faces a challenging situation with rising inflation and potentially slowing growth, likely leading them to hold off on interest rate changes.
- The U.S. economy experienced job losses and a slight increase in the unemployment rate in February.
Continue reading the original article