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Making waves underground: India's first undersea rail tunnel takes shape · 14 hours ago IRDAI launches comic book series to simplify life insurance for consumers · 14 hours ago Fans 1, Productivity 0: How FIFA World Cup 2026 could trigger $17bn loss worldwide · 15 hours ago India's power sector set for strong FY27 growth on rising demand, capacity additions: Report · 16 hours ago ITR filing: Sold shares, property or crypto this year? Here's what you must know before filing your income tax return · 19 hours ago Punjab National Bank Q1FY27 net profit up 213% to Rs 5253 crore · 19 hours ago IDBI Bank Q1FY27 net profit rises 3.3% to Rs 2007 crore · 19 hours ago Nobody wants to wait on hold anymore. But can AI replace customer care? · 20 hours ago Pakistan to revise fuel prices daily; current account slips into $139 million FY26 deficit · 19 hours ago New money? India's currency might soon get a plastic makeover · 21 hours ago Textile sector to sew loose ends as FTAs kick in · 1 day ago NITI index: Gujarat, Maharashtra lead in wooing investors · 1 day ago Making waves underground: India's first undersea rail tunnel takes shape · 14 hours ago IRDAI launches comic book series to simplify life insurance for consumers · 14 hours ago Fans 1, Productivity 0: How FIFA World Cup 2026 could trigger $17bn loss worldwide · 15 hours ago India's power sector set for strong FY27 growth on rising demand, capacity additions: Report · 16 hours ago ITR filing: Sold shares, property or crypto this year? Here's what you must know before filing your income tax return · 19 hours ago Punjab National Bank Q1FY27 net profit up 213% to Rs 5253 crore · 19 hours ago IDBI Bank Q1FY27 net profit rises 3.3% to Rs 2007 crore · 19 hours ago Nobody wants to wait on hold anymore. But can AI replace customer care? · 20 hours ago Pakistan to revise fuel prices daily; current account slips into $139 million FY26 deficit · 19 hours ago New money? India's currency might soon get a plastic makeover · 21 hours ago Textile sector to sew loose ends as FTAs kick in · 1 day ago NITI index: Gujarat, Maharashtra lead in wooing investors · 1 day ago
Sunday, 19 Jul 2026 · IST
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General

How does the current situation in the Middle East affect the US economy?

An interruption in supply and demand and economic warfare, coupled with unfair business practices in the US causes the price of fuel to rise. During the original invasion of Iraq, tanker traffic in the Persian Gulf was drastically cut for fear of losing ships and cargo. This caused a minor shortage of crude oil. OPEC only sales crude, it is refined (distilled) locally. In capitalist free markets, suppliers are allowed to raise prices during shortages, so that they can outbid other consumers when replenishing their crude. Unfortunately, OPEC realized that countries were willing to pay this extra price and refused to lower their price when pre-war supply was restored. OPEC denies this, but the US has captured documents that prove OPEC intentionally inflated prices. Now, because gas prices go up, it costs more for the shipping and trucking companies to do business. A large percentage of what you pay for a gallon of milk comes from the shipping cost of getting it to your grocery.

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