Here’s Where U.S. Economy Is Most Vulnerable to Iran War
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The U.S. economy grew at a rate of 0.7% in the fourth quarter of 2025, according to a second estimate released on Friday by the Bureau of Economic Analysis.
Rising oil (CL1:COM) (CO1:COM) (USO) prices will have a muted effect on the U.S. economy overall, according to Torsten Slok, chief economist at Apollo Global Management. Slok said that even a $35 increase in oil prices—from $65 to $100 per barrel—would produce minimal macroeconomic consequences.
FILE PHOTO: U.S. President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan, South Korea, October 30, 2025. REUTERS/Evelyn Hockstein/File Photo
WASHINGTON, March 13 (Reuters) - U.S. economic growth slowed more sharply than initially thought in the fourth quarter amid downward revisions to consumer spending and business investment, government data showed on Friday.
Oil prices jumped Tuesday for the second straight day and gas prices moved higher in the United States, underscoring the threat of rising inflation posed by the Iran war.
The U.S. and Israeli attacks on Iran add yet more question marks around a U.S. economy already buffeted by on-and-off tariffs, weak hiring and lingering inflationary pressures. The war has already raised oil prices and could lift prices at the pump as early as this week,
The report also underscores an odd aspect of the U.S. economy: It is growing steadily, but without creating many jobs. Growth was a fairly healthy 2.2% in 2025, yet a government report last week showed that employers added less than 200,000 jobs last year — the fewest since COVID struck in 2020.