How Iran strikes could hit Richmond wallets
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Illustration: Aïda Amer/Axios
Richmonders are likely to feel the impact of President Trump's war with Iran in their wallets.
Why it matters: The conflict is already pushing up energy prices, and there will likely also be a ripple impact on industries connected to them.
Driving the news: Oil prices, then gas prices, spiked following the U.S. and Israel's strikes on Iran.
- Richmond's average gas price hit $3.25 a gallon Friday, rising by 7 cents overnight and 38 cents over the previous week, according to a review of gas prices from AAA.
- The national average for gas also jumped sharply last week, hitting $3.32 a gallon by Friday, per AAA.
- Last week also saw the biggest single-day spike in gas prices since March 4, 2022, according to GasBuddy analyst Patrick De Haan.
Here's what else is likely to get more expensive:
Travel
European jet fuel prices surged to multiyear highs last week. That means flights out of Richmond (or anywhere) could become more expensive.
- Some airlines hedge fuel costs, which can soften the blow, but prolonged price spikes often show up in fares.
Consumer goods relying on oil
Products that rely on oil — namely, plastics — are likely to get more expensive as well.
- "Plastic is based around oil or natural gas, heating, air-conditioning, cooking, all that stuff... gets more expensive when there's a shortage or when supplies are constrained," Middle East specialist Jim Krane told Time.
Shipping
Traffic has ground to a halt through the Strait of Hormuz, a waterway on Iran's southern coast that's a key route for commodities like aluminum, sugar and for 33% of the world's fertilizers.
- Diverted ships will likely have to reroute, causing major delays and likely price increases.
- Blocked access to the strait will likely also impact the price of other products that pass through there, like clothing, cookware and medical equipment.
And oil and gas prices are expected to keep going up
The national average gas price could reach a high of $3.50 a gallon in the coming weeks, Tom Kloza, a longtime oil analyst now working for Gulf Oil, told Axios.
The bottom line: The ripple effects of the attacks on Iran are still unfolding.