The financial strain is already impacting consumers at the pump. Following record-high Labor Day gas prices, diesel is expected to cross $6 per gallon for the first time in the coming days.
The market shock comes as that top White House advisors have discussed the possibility of the war continuing past Inauguration Day in January 2029 with President Donald Trump. The assessment stands in contrast to statements made by Trump, who asserted that the conflict was drawing to a close and claimed the war would end immediately after the midterm elections.
Trump also told reporters that oil and gasoline prices would fall after the midterms, alleging that Iran was "desperate to try and affect the election, so that we can get a nice weak group of people in there, and leave them alone and let them have their nuclear weapon. "
The recent spike in prices follows a sharp military escalation following a period of relative calm in August. Iran launched multiple attack attempts against American warships, prompting the US military to destroy at least eight Iranian tankers. Concurrently, Iran's Houthi allies in Yemen struck several energy facilities and targets in Saudi Arabia, injuring over 70 civilians and raising fears of a broader regional conflict.
Market analysts warn that the situation could worsen if logistics remain threatened. Daan Struyven, co-head of global commodities research at Goldman Sachs, noted during an interview on
