{"id":2718,"date":"2020-01-04T05:33:46","date_gmt":"2020-01-04T05:33:46","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2020\/01\/04\/as-tensions-mount-with-iran-should-you-be-worried-about-rising-oil-prices\/"},"modified":"2020-01-04T05:33:46","modified_gmt":"2020-01-04T05:33:46","slug":"as-tensions-mount-with-iran-should-you-be-worried-about-rising-oil-prices","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2020\/01\/04\/as-tensions-mount-with-iran-should-you-be-worried-about-rising-oil-prices\/","title":{"rendered":"As tensions mount with Iran, should you be worried about rising oil prices?"},"content":{"rendered":"

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The death of an Iranian military leader in a U.S. airstrike has sent markets reeling. But U.S. consumers won\u2019t feel the impact of rising oil prices immediately. <\/p>\n

Qassem Soleimani, the leader of the foreign wing of Iran\u2019s Islamic Revolutionary Guard Corps, was killed in an airstrike<\/a> on Baghdad\u2019s international airport Friday. Soleimani was previously described as being second to only the Supreme Leader Ayatollah Ali Khamenei in Iran. <\/p>\n

The S&P 500
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\n SPX, -0.71%<\/span><\/a><\/span>,
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\n the Nasdaq Composite
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\n COMP, -0.79%<\/span><\/a><\/span>
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\n \u00a0and Dow Jones Industrial Average
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\n DJIA, -0.81%<\/span><\/a><\/span>
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\n \u00a0all fell in morning trading as markets reacted to the news. The 10-year Treasury yield
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\n TMUBMUSD10Y, -4.69%<\/span><\/a><\/span>
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\n \u00a0fell by roughly 7 basis points as investors sought safer assets \u2014 bond prices move in the opposite direction of yields. Similarly, gold prices
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\n GC00, +1.77%<\/span><\/a><\/span>
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\n \u00a0soared.<\/p>\n

But the biggest impact of Soleimani\u2019s death so far appeared to be on oil prices
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\n BRN00, +0.15%<\/span><\/a><\/span>.
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\n Crude oil prices
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\n CL00, +3.04%<\/span><\/a><\/span>
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\n \u00a0 jumped 3.42% to more than $63 on Friday morning, the highest level since April 2019. But one analyst suggested that oil prices
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\n CL.1, +3.04%<\/span><\/a><\/span>
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\n \u00a0could go as high as $80<\/a> even if a full-blown war between the U.S. and Iran didn\u2019t materialize.<\/p>\n

But experts say escalating tensions between the U.S. and Iran won\u2019t be felt as acutely on U.S. shores as previous conflicts in the Middle East.<\/p>\n

The past isn\u2019t precedent when it comes to gas prices<\/h6>\n

Historically, conflict in the Middle East has translated into higher prices at the gas pump for American drivers. In 1990, when the first Gulf War began, gas prices rose 11% over the previous year as a result of the conflict. And before that gas prices increased by almost a third between 1979 and 1980 as a result of the Iranian Revolution.<\/p>\n


\n We\u2019ve added 7.5 million barrels a day of oil production versus a decade ago. That has been a paradigm shift in terms of the global demand and supply balance.\u2019 <\/p>\n