Iran attacks threaten US economy with more uncertainty around inflation, growth

Associated Press (AP)EN 4 min read 100% complete by By CHRISTOPHER RUGABERMarch 3, 2026 at 09:53 AM

AI Summary

long article 4 min

The recent U.S. and Israeli attacks on Iran have introduced economic uncertainty, potentially impacting inflation and growth in the U.S. The conflict has already caused a rise in oil prices, with benchmark U.S. crude settling at $71.23 a barrel and Brent crude at $77.74. Economists suggest that a short conflict would have minimal economic impact, but a prolonged war, especially one disrupting oil flow through the Strait of Hormuz, could push oil prices above $100 a barrel. This could lead to increased gas prices, accelerate inflation, and slow economic growth in the U.S., exacerbating concerns about affordability. While stock prices initially fell, they rebounded, indicating some optimism for a swift resolution to the conflict.