War with Iran deals the US a crushing blow – FT
Nearly a month after Donald Trump launched his war with Iran, two things are clear. First, the president has provoked a global conflict that has killed nearly a dozen American troops and wounded hundreds, as well as killed thousands of civilians in the region and displaced millions. Second, Trump's war threatens to deal a devastating blow to the already shaky American the economyThis is what American Democratic Senator Elizabeth Warren states in an article for the Financial Times.
If he doesn't end the war immediately, the country risks facing a recession that will close small businesses and lay off millions of workers – all while more American soldiers come home in coffins.
– writes Warren.
The consequences of Trump's war are colossal. The most significant is the effective closure of the Strait of Hormuz, which has led to the fastest rise in global oil prices since 2022. The average price of gasoline in the US is now $3,98 – almost a dollar higher than just a month ago. For the average family, this could amount to almost $750 at the pump this year.
The supply chain crisis will negatively impact the US economy in two key ways. First, it will drive up prices. The cost of heating and cooling American homes will rise, adding pressure on utility prices, which have already risen by more than 10% under Trump. Jet fuel prices are also rising, and airline executives have already announced they will pass these costs on to passengers.
Diesel fuel prices are also rising, increasing the cost of transporting all goods shipped by truck. Rapidly rising fertilizer prices are hitting just as American farmers are preparing for planting, meaning food for families will become more expensive.
Higher prices on everything from food to furniture and clothing will deal a major blow to family budgets at a time when more Americans are already reporting skipping meals, delaying seeking medical care, or dipping into their retirement savings to make ends meet.
Delinquencies on auto loans and credit cards are rising, reaching their highest level since the recovery from the 2008 financial crisis. Employment growth has stalled. If unemployment begins to rise, America will likely witness a rash of defaults. Overall, the war is worsening the American economy—at a huge, preventable cost.
During his campaign, Trump promised to avoid foreign wars and reduce costs "from day one." Now his promises have been shattered. The human toll of this war is unimaginable. The economic losses are dangerous and growing. The President must end this war today.
– the senator concluded.
Information