President Donald Trump recently announced the US pulling out of the Iran deal, and the ramifications are hitting the country quickly, and Americans are now feeling the effects, from higher gas prices all the way up to increased airline tickets and shipping costs.
In the time span between President Trump started tweeting about pulling the US out of the Iran nuclear deal and the time he officially announced the US actually pulling out of said deal, the prices of crude oil and gas in the US have been steadily going up. Oil prices skyrocketed on the 9th of March to the highest they’ve been in over 3 years.
Those rising prices are expected to have a detrimental effect to the country’s economic growth, with some analysts saying it’ll cancel out a huge chuck of the GDP boost the US is expecting from 2017’s tax cuts. Costlier gas prices, meanwhile, are leaving a huge dent on the finances of average Americans, reducing savings they might’ve gotten from the tax cuts.
Gregory Daco, Oxford Economics’ Head of US Economics, says that a continuous and prolonged increase in oil prices have the ability to reverse part of the benefits the country gained from the fiscal stimulus. Oxford estimates a 0.7% boost to the US GDP thanks to the tax cuts, half of which would be offset if the price trend seen on the 9th of March stay, which will be felt by companies with Ohio EIN and the average Joe.
Gas prices in the US rose by 15 cents since April came in, according to Boston-based price tracking tech company GasBuddy, and they are saying that there is a chance that the national average go shoot past $3/gallon. They say that there’s a lot of other factors to consider, which is part of the reason why people didn’t expect that the recent geopolitical developments would have such a big effect on driving gas prices up.
On top of all that, the developments came around summer driving season, when summer-gradegasoline drives up prices, with Morgan Stanley saying that the increases in gas pricing since the start of 2018 have already cut into one-third of all American savings from 2017’s tax reforms.
Additionally, business are also going to be affected, from small companies with Ohio EIN to national giants. In particular, transportation will take a huge hit, with companies like FedEx and UPS expected to face higher pricing, which, of course, will trickle down to their consumers.