Rockets are going back and forth, people are dying, and reports are that troops are moving for borders. I read somewhere last night that Egypt is looking like it might get involved too.
All in all, not good times, not at all…
There’s quite a few things that could happen as a result of a real hot war breaking out. And most of them aren’t all that good. But let’s talk about one thing.
See, if war breaks out, I’m guessing that Iran will be involved in some way. And there’s a real good chance that if that happens, the oil flow from the region will be impacted too.
And while we actually have enough domestic production to supply most of our needs, oil is a global market and thus we’ll be impacted heavily. Besides, for whatever stupid reason, we apparently SELL most of our oil and then buy back other oil from other producers. Go figure.
Immediate impact? Prices go up.
Mid term impact? Prices go up, and gas is harder to find. Look at the outlying areas around Sandy to get an idea of what this looks like.
Longer term impact? Prices keep going up. Gas is still hard to find. Long lines at the pumps, gas rationing, and flat out unavailable in some places.
What does your life look like if you’re paying $1 more a gallon? How about $3 more? $5 more?
And don’t forget about the impact to availability for goods overall, even if you’ve got gas to drive. Trucks need diesel to get stuff from point A to your store.
Think those guys are going to eat the extra transportation costs? Nope. You will.
Consider also the economic trickle down of that problem. Less retail sales, less service demand, enter layoffs, market crashes, etc.
Hopefully if things DO hit the fan over there, it’s short lived. I don’t know that our economy can handle anything longer term right now.
Think about the potential impact. Think about how it might affect you. And make sure you’re ready, or at least moving towards being ready…