The Digester

Economist Mary Lovely tells NPR that the recent U.S. strikes on Iran sent oil markets into immediate turmoil and, combined with tariff uncertainty, could push inflation into everyday costs like groceries and schooling.

Oil prices jumped about 10 percent after the U.S. strikes, showing how quickly conflict in the region moves markets.
About 80 percent of oil through the Strait of Hormuz is bound for Asia, so any disruption would have global effects.
Mary Lovely warns oil shocks tend to flow into food, transport, and education costs as they did in the 1970s.
The U.S. and other countries have buffers such as strategic petroleum reserves and spare OPEC+ capacity to soften shocks.
New U.S. trade measures, including a 15 percent Section 122 import tax, are adding policy uncertainty that could raise costs for businesses.

Economist Warns Trump’s Iran Strike Could Spark 1970s-Style Inflation

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