As the war in Iran enters its third week, the world remains on tenterhooks. While concerns persist about the war intensifying and the participating countries deepening their involvement, the primary economic worries are around the surging oil prices. Notably, the prices of April WTI Crude Oil (CLJ26) have witnessed a sharp jump of 48.2% since Feb. 28, the day when the first munitions from the U.S.-Israel combined force were dropped on Iran. Consequently, while Tehran and the wider Middle East remain on the boil, the American public is paying more for gasoline at gas stations, as the damages from “Operation Epic Fury” are not just beyond its shores.
While gasoline prices reached their highest levels since 2022, fertilizer costs such as urea are up by 35%, with the war-torn Gulf region producing nearly 50% of global urea exports. This is being slowly but surely reflected in the prices of everyday essentials such as eggs (up 14% since Feb. 28), bread (up 5% since Feb. 28), and milk (up 3% since Feb. 28), among others.
