The US economy faces the risk of slowing growth.

VTV.vn - Stock markets are volatile, consumers are tightening their spending, and the US economy faces many uncertainties amid international tensions.

Consumers choose items to buy at a supermarket in California, USA. Photo: THX/VNA

While the conflict between the US, Israel, and Iran continues, many American newspapers have begun analyzing the economic impact of the war on the US economy.   A common theme being discussed in many newspapers is the impact of the conflict on the prices of essential goods, especially gasoline, and more broadly, on making inflation in the US difficult to control.

The Associated Press (AP) published an article directly addressing gasoline prices. It stated that the average price of a gallon of gasoline in the U.S. rose 11 cents overnight, to approximately $3.11. In the recently concluded trading session, oil futures also reached a record high in over a year, as the conflict showed signs of escalating.

Rising crude oil prices will significantly impact gasoline prices over the next 20 days. A $10 increase in a barrel of oil typically leads to a 25-cent increase in gasoline prices per gallon.

Another AP article offered a more comprehensive perspective, suggesting that the conflict had driven up oil prices and could push gasoline prices higher as early as this week. However, the ultimate impact on the economy and inflation will depend on the duration and severity of the conflict.

A prolonged price war pushing oil prices above $100 a barrel would exacerbate inflation, slow growth, and increase public anxiety about the cost of essential goods.

After years of persistently high inflation, another surge in fuel prices could reinforce the perception that price pressures are becoming inherent. This will impact people's spending habits and interest rate policies.

In an article in Marketwatch, analysts assessed that the biggest danger to the US economy could be the impact on middle- and low-income earners if gasoline prices rise by 10 to 20 cents in the next few months. This would put additional financial pressure on households and lead to a decrease in spending.

Barron's, meanwhile, assesses that the continued rise in energy costs, combined with persistent inflation, will complicate the Federal Reserve's decision-making process. In this situation, the view against cutting interest rates too soon will be supported. The continued rise in oil prices will give Fed officials more reason to wait for clear evidence that inflation is returning to its target level.

Another visible impact is the conflict shaking up the Wall Street stock market. Major indices have shown signs of volatility in recent sessions. The sell-off is expected to continue.

Source: https://vtv.vn/kinh-te-my-truoc-rui-ro-tang-truong-cham-lai-100260304082552868.htm