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

By CHRISTOPHER RUGABER, AP Economics Writer

WASHINGTON (AP) — Oil prices jumped Tuesday for the second straight day and gas prices moved higher in the United States, underscoring the threat of rising inflation posed by the Iran war.

Coming after nearly five years of elevated costs, even a modest pickup in prices could further sour many Americans on the economy and heighten the affordability concerns that have become a top political issue.

On Tuesday, U.S. oil prices rose more than 5% to $75.22 a barrel in afternoon trading. Gas prices jumped 11 cents to $3.11 a gallon on average nationwide, according to AAA.

A key issue, economists say, is how long the conflict lasts and whether shipping routes, such as the Strait of Hormuz, at the mouth of the Persian Gulf, is closed. About one-fifth of the world’s oil and natural gas is shipped through the Strait. Even a war of a few weeks might not push up inflation or weaken the economy very long. But should it last for a few months, inflation would likely worsen — perhaps topping 3% ...