Middle East conflict threatens to exacerbate inflationary pressure on some things
By MATT OTT, AP Business Writer
Israel’s attack on Iran Friday has catapulted their long-running conflict into what could become a wider, more dangerous regional war and potentially drive prices higher for both businesses and households.
Oil and gold surged and the dollar rose as markets retreated, signaling a flight to investments perceived as more safe.
After years of sky-high inflation in the aftermath of the COVID-19 pandemic, Americans have become increasingly leery about the economy this year due to President Donald Trump’s sweeping tariffs, though the impact so far has been muted.
The latest escalation in the Middle East has the potential to cause widespread price increases that could set consumers back again.
Here’s a look at some of the sectors that could face an outsized impact from the escalation in the Middle East, and what that might mean for consumers.

Energy
Oil prices surged Friday to their biggest gain since the onset of Russia’s war on Ukraine began more than three years ago. If or when Israel’s attack on Iran could impact gas prices, which have been in decline for nearly a year, isn’t entirely clear.