Americans are reeling from the effects of the Iran war—now entering its ninth week—in which the choke hold on the Strait of Hormuz has effectively stopped the flow of more than 20% of the world’s energy supply and has sent countries globally scrambling to find alternatives. In the U.S., average gas prices exceed $4.45—some even touch $6 in some parts of the country—the highest levels since 2022. March saw the biggest jump in core inflation, 0.7%, in three years amid rising oil prices. Produce staples like tomatoes, bananas, and yellow onions have already gotten more expensive since the war began, and as a result of increasing fertilizer prices, food costs are expected to continue rising as farmers struggle to afford critical chemicals traded through the strait.
But despite all this, one economist argues it could be much worse.
