For the past six weeks, as this US-Israeli war with Iran has played out, the economic impact of the conflict has gotten a lot of attention. And rightfully so.
As anyone who's consumed any news about this war knows well by now, the Strait of Hormuz is a major energy chokepoint, the Iranian government did exactly what they said they were going to do if Trump and Netanyahu ordered this attack and started blocking ships tied in any way to the government's attacking them from passing through the Strait, and the US, Israeli, or really any other government have not been able to do anything about it.
However, throughout all of this, most of the discourse about the economic impacts of the war has focused on the rising prices drivers are facing at the gas pump. That isn't surprising, as gas prices are an early cost that impact consumers directly.
But the emphasis on pain at the pump threatens to badly
understate the economic damage of this war. And it helps feed the false impression that, if this new attempt at a ceasefire holds and the war ends somewhat quickly, gas prices will fall back down as fast as they rose, and then all the global economic turmoil the world's been worrying about will be avoided.
Comment: The kids seem to be getting cranky: