Latest / DEEP INSIGHT / Iran war - Gas hikes costing Americans extra $73B

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Iran war - Gas hikes costing Americans extra $73B · DEEP INSIGHT

• 0:00
  Speaker 1: According to Triple A, the national average price for a
• 0:02
  Speaker 1: gallon of regular gas this morning is four dollars and
• 0:05
  Speaker 1: eleven cents. That's up more than a dollar and ten
• 0:08
  Speaker 1: cents since the start of the war back in February.
• 0:11
  Speaker 1: And look at this. Brown University now says the total
• 0:14
  Speaker 1: consumer burden since the start of the war for gasoline
• 0:18
  Speaker 1: and diesel alone is more than seventy three billion dollars
• 0:22
  Speaker 1: and going up by the minute. All of this is
• 0:24
  Speaker 1: having a massive impact on your wallet. Cn A senior
• 0:28
  Speaker 1: business reporter, David Gold, that is here to make it
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  Speaker 1: make sense for all of us. David, Today's question, how
• 0:34
  Speaker 1: much is the Iran war actually costing American families?
• 0:38
  Speaker 2: It's a lot, Wolf, I mean you were talking about
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  Speaker 2: gas prices. Now, this price, the four to eleven, that's
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  Speaker 2: up almost forty cents from where we were just a
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  Speaker 2: couple weeks ago, and that adds up. I mean three
• 0:51
  Speaker 2: hundred and five dollars is your average bill for the
• 0:55
  Speaker 2: increase in gas prices and two fifty three for diesel.
• 0:58
  Speaker 2: That really matters because everything comes on a truck, including
• 1:02
  Speaker 2: your grocery prices, which have cost you an average of
• 1:06
  Speaker 2: two hundred and forty dollars more during the course of
• 1:09
  Speaker 2: the war. Also, we're all paying for transportation, and that
• 1:14
  Speaker 2: has added one hundred ten dollars to your average bill
• 1:18
  Speaker 2: just to get around. Now it's not just gas prices
• 1:22
  Speaker 2: that are raising costs for you. Also mortgage rates because
• 1:26
  Speaker 2: oil has raised bond yields and this affects your mortgage.
• 1:31
  Speaker 2: And now you're paying on average two hundred dollars a
• 1:34
  Speaker 2: month more if you get a new mortgage because those
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  Speaker 2: rates have increased. We're up to almost six point six percent.
• 1:41
  Speaker 2: We were below six percent just before the war. And
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  Speaker 2: when you have the median home price of four hundred
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  Speaker 2: and forty one thousand dollars in this country, that really
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  Speaker 2: adds up. But it's not just the cost to you
• 1:56
  Speaker 2: as a consumer. It's also the cost to you as
• 1:59
  Speaker 2: a taxpayer. And the average cost per taxpayer for the
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  Speaker 2: military cost of this war is two hundred eighty dollars
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  Speaker 2: just over the past few months. Well, if it's really
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  Speaker 2: starting to add up, we are now looking at a
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  Speaker 2: grand total of nearly fourteen one hundred dollars per average
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  Speaker 2: American household for the cost of the war.
• 2:22
  Speaker 1: Yeah, that's the work continues to escalate. It is it
• 2:25
  Speaker 1: looks like it is that's going to go up and
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  Speaker 1: up and up. Yesterday I had a chance, said David,
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  Speaker 1: to fill up my car with a regular gas and
• 2:33
  Speaker 1: take a look at this. I took a picture. Five
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  Speaker 1: dollars and fifty nine cents a gallon regular gas. What
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  Speaker 1: is the highest national average we've ever seen.
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  Speaker 2: Yeah, that's quite a bit higher than the average that
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  Speaker 2: we had before. In twenty twenty two, we were at
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  Speaker 2: five dollars in two cents. Now, if you remember, there
• 2:55
  Speaker 2: was a ton of inflation in twenty twenty two, so
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  Speaker 2: that is now almost six dollars. It was five hundred
• 3:02
  Speaker 2: and ninety five dollars and ninety cents in today's money.
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  Speaker 2: So clearly we have a little bit of a room
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  Speaker 2: to go. But people like you are paying something pretty
• 3:14
  Speaker 2: close to this, depending on where you're getting gus Wolf.
• 3:17
  Speaker 1: Yeah, before the war, the average price for a gallon
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  Speaker 1: of regular gas was two dollars and ninety eight cents,
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  Speaker 1: and recently it's right right now. The average price around
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  Speaker 1: the country is four dollars and ten cents. And when
• 3:31
  Speaker 1: I was paying five dollars and fifty nine cents, that's
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  Speaker 1: way higher. Here in the DC area, David Goldbin, thanks
• 3:36
  Speaker 1: as usual for making it make sense.
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  Speaker 3: I want to bring in CNN's global economic analyst Rana Farura,
• 3:43
  Speaker 3: who's also Financial Times global business columnist. Ronald's great to
• 3:48
  Speaker 3: have you with us. I mean, what a time to
• 3:50
  Speaker 3: be talking right now. There's just so much uncertainty in
• 3:53
  Speaker 3: terms of where things are headed. Right now. You've got
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  Speaker 3: bread crude sitting below one hundred dollars a barrow right now.
• 4:00
  Speaker 3: Nobody knows where it's going. Everyone's in a holding patent
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  Speaker 3: to see what happens this weekend. Is it escalation or not?
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  Speaker 3: But I have to say the bond markets is also
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  Speaker 3: showing something really interesting because it is signaling more inflation.
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  Speaker 4: Yeah, absolutely, Lenny. Look, let's think about the last few
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  Speaker 4: weeks and months. I mean, we can we can talk
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  Speaker 4: about what might happen by tomorrow, but what we know
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  Speaker 4: has happened for the last few months, and indeed, you
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  Speaker 4: know over a year now in Trump two, is that
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  Speaker 4: you've had repeated use of choke points, weaponization of the
• 4:36
  Speaker 4: straight offour moves, you know, tariffs becoming.
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  Speaker 5: An issue again.
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  Speaker 4: These are the things that markets worry about inflation around,
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  Speaker 4: and there doesn't seem to be any reason to think
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  Speaker 4: that whatever happens in the short term with oil, if
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  Speaker 4: the straight and pom moves is not going to continue
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  Speaker 4: to be a key global choke point, that will simply
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  Speaker 4: require a higher price demand a higher.
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  Speaker 5: Price in the market.
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  Speaker 4: It's because of the uncertainty, because of the sense that
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  Speaker 4: we know where things are going.
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  Speaker 5: To be from day to day.
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  Speaker 4: You add into that President's lats terror for us, and
• 5:10
  Speaker 4: you know, you're kind of off the races. We've been
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  Speaker 4: here before at the beginning of Trump too. We've been
• 5:15
  Speaker 4: here many times. I spect we'll be here again. Why
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  Speaker 4: the President is doing this in advance of the terms
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  Speaker 4: very tough to say, because I can tell you the
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  Speaker 4: one price that American seat every single day is the
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  Speaker 4: price at the pump, and they are not.
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  Speaker 5: Happy about it.
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  Speaker 3: Yeah, exactly. And it's just so important in terms of
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  Speaker 3: how the American consumer is feeling because it frankly erodes
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  Speaker 3: spending power as well. When we look at sort of
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  Speaker 3: this new maritime front that's opened up, and that's Babel
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  Speaker 3: Mandap straight the Red Sea, you know, there's a lot
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  Speaker 3: of concern around you know, whether that reality has really
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  Speaker 3: sunk into oil markets and into the global markets as yet.
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  Speaker 3: That being said, we have seen some vessels that are
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  Speaker 3: Chinese owned that have been able to transit even they
• 6:00
  Speaker 3: have originated from Saudi Arabian ports. So we don't really
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  Speaker 3: know how that is going to play out, but that's
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  Speaker 3: just an extra issue taking more oil out of the market.
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  Speaker 5: Yeah.
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  Speaker 4: Absolutely, And it's interesting that they're Chinese vessels. I think
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  Speaker 4: one aspect of the story that really hasn't been reported
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  Speaker 4: on and out is China owns the seas, China owns
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  Speaker 4: the maritime industry.
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  Speaker 5: China has fifty five hundred ocean going vessels. America has
• 6:24
  Speaker 5: one hundred and eighty seven.
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  Speaker 4: So the Chinese wanted to use that maritime power, you know,
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  Speaker 4: use their growing economic power, not just.
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  Speaker 5: To negotiate special deals in choke points, but to really
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  Speaker 5: you know, prioritize their.
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  Speaker 4: Own ships, their own commercial goods, their own trading partners.
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  Speaker 5: They can very very easily do that.
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  Speaker 4: I actually have a new book myself coming out on
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  Speaker 4: a topic in October, so this is something I'm paying
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  Speaker 4: a lot of attention to.
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  Speaker 3: Yeah, I mean it's super fascinating. You mentioned tariffs quite extensively,
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  Speaker 3: and you know, I you know, we had to do
• 7:01
  Speaker 3: a double take this week when tariffs kind of came
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  Speaker 3: up again, because I was like, well, hang on, We're
• 7:06
  Speaker 3: dealing with enough uncertainty. You're just adding more to the
• 7:08
  Speaker 3: greatest scheme of things. But I wonder how this is
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  Speaker 3: going to play out because the year Supreme Court ruled
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  Speaker 3: against the sweeping tariffs imposed last year, So how are
• 7:18
  Speaker 3: these going to sort of get through the system? I'm
• 7:21
  Speaker 3: kind of confused. Could you explain that?
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  Speaker 5: Yeah, for sure.
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  Speaker 4: So if you go back to that Supreme Court ruling,
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  Speaker 4: we always knew that the Supreme Court could strike.
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  Speaker 5: Down those blanket tariffs.
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  Speaker 4: However, there was always the possibility that the President could
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  Speaker 4: use extra means, extra three or one cases to thirty
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  Speaker 4: two cases, basically start to use a more piecemeal strategy,
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  Speaker 4: let's say, to try and take on the adversaries and
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  Speaker 4: allies alike. As it turns out, there's sixty countries that
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  Speaker 4: are now dealing with new tariffs as the possibility of them.
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  Speaker 5: It's not as easy of.
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  Speaker 4: A strategy as to say, we are simply putting on
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  Speaker 4: blankets tariffs.
• 8:00
  Speaker 5: And if the Supreme Court had said yes, that's fine.
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  Speaker 4: But it is a strategy, and in some ways it
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  Speaker 4: kind of feeds on Trump's desire for chaos for surprise,
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  Speaker 4: I will say, jameson Greer, I think is is being
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  Speaker 4: authentic in his desire to knock force labor out of
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  Speaker 4: the supply chains of anyone who said he goes to
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  Speaker 4: the US, and I understand that. I think that's a
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  Speaker 4: legitimate and valid reason to use triffs as a weapon.
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  Speaker 4: But some of the other reasons we're seeing, you know,
• 8:28
  Speaker 4: the abuse of depression era laws against Canada, you know,
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  Speaker 4: surprised tariffs on allies.
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  Speaker 5: It's more of the same chaos.
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  Speaker 4: It's not serving the president at home, and it's certainly
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  Speaker 4: not serving him abroad.
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  Speaker 3: Yeah, so so Na, you know, this sort of feels
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  Speaker 3: like weaponization of absolutely everything at this point in time. Look,
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  Speaker 3: you've written extensively around sort of what a post a
• 8:53
  Speaker 3: globalized economy would look like, and you said that you've
• 8:56
  Speaker 3: you've got a new book coming out very soon. I
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  Speaker 3: don't know how you put that together with so much
• 9:00
  Speaker 3: changing on the geopolitical front of you, which is sort
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  Speaker 3: of editing, you know, sort of every week, because there's
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  Speaker 3: so much that's influencing what it will mean going forward
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  Speaker 3: for the global economy. So tell me what is your
• 9:11
  Speaker 3: take on where this ends and how it lands, well,
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  Speaker 3: you know.
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  Speaker 4: My take, And this is again the topic of the
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  Speaker 4: new book is called Sea Change, America's new Great Game
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  Speaker 4: in the Arctic. I was looking at the Arctic as
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  Speaker 4: just one geopolitical theater, but it's all about choke points,
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  Speaker 4: it's all about regionalization, and fundamentally, it's I think a
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  Speaker 4: new nineteenth century style great game in which the US
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  Speaker 4: and China are going to be duking it out in
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  Speaker 4: multiple territories, with adversaries and allies.
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  Speaker 5: Coming in at different times, changing sides. You know, this
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  Speaker 5: is a very nineteenth century paradigm.
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  Speaker 4: This is exactly what the UK and Russia did for
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  Speaker 4: a century in Central Asia, India, and we're seeing it again.
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  Speaker 4: We're seeing it in the South China Sea's the Strait
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  Speaker 4: of War MOUs, the Arctic, the Red Sea, West Africa.
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  Speaker 5: Latin America.
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  Speaker 4: So hanging on to your hat, Lanny, because it's going
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  Speaker 4: to be not just years, but I think decades of this.
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  Speaker 3: I mean, so what you're saying is we haven't heard
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  Speaker 3: and learned from history. We're just repeating the same mistakes
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  Speaker 3: interesting times. Where do you think oil is going? What's
• 10:15
  Speaker 3: your take on oil prices? We'd said on that.
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  Speaker 4: Yeah, okay, well you know, look, there in a softening
• 10:24
  Speaker 4: at the moment, but I think that they're going to
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  Speaker 4: sit stay higher, much higher than trend. And this really
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  Speaker 4: goes back to what I said when we first began
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  Speaker 4: our conversation choke points.
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  Speaker 5: We now have multiple choke.
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  Speaker 4: Points around the world, straight up formos for oil, South China,
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  Speaker 4: Seas for you know.
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  Speaker 5: Commercial goods.
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  Speaker 4: The Arctic increasingly is an energy choke point, rare earth
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  Speaker 4: mineral choke points in different parts of the world. So
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  Speaker 4: we've left this kind of last fifty years of oh
• 10:51
  Speaker 4: it's really easy to get things for point A to B.
• 10:53
  Speaker 5: To see, we.
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  Speaker 4: Are in a new world in which geography is being weaponized,
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  Speaker 4: countries are developing their own own regionalized systems, and it's
• 11:02
  Speaker 4: not business as usual, and it's going to be a
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  Speaker 4: bumpier ride than.
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  Speaker 5: In the past.
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  Speaker 3: Rana, great to have you with us. Thank you so much.
• 11:12
  Speaker 3: As always, lovely to speak to you.