What local impacts could appear amid ongoing conflict in Middle East
COACHELLA VALLEY, Calif. (KESQ) – Conflict in the Middle East is leaving many consumers and investors speculating on what impacts could appear at home.
Drivers in the Coachella Valley found increased gas prices compared to last week. News Channel 3 reported a 40-cent increase in a span of a month during February.
On Monday, two motorists were surprised to see a jump of nearly 50 cents from last week to Monday. They paid $4.55 per gallon at an Arco in Cathedral City on Date Palm Drive, right near Interstate 10.
Gilberto Rodriguez, eyeing the gas prices, exclaimed, "It's been a problem. It's hard. Like, I'm only putting ten bucks right now, so… barely gonna make it home."
Brent crude, the international benchmark for global oil prices, rose 6.7% on Monday. It marked the highest level since the United States struck Iranian nuclear sites last June.
The average price of gas across California: $4.61, according to GasBuddy.
Dana Crosby, an investment advisor based in Rancho Mirage, has been keeping a close eye on markets since U.S.-Israel strikes began. He said the attack caught some investors by surprise, leading to reaction in the stock market.
"The markets are always pricing in, you know, global risk. And I think in this case, you know, this is going to have a short term effect," he said. Those short-term impacts include potential increases among energy and shipping costs, especially as Iran targets its neighbors in retaliatory strikes, putting a strain on vital shipping corridors, like the Strait of Hormuz.
In the long-term, though, Crosby did not believe the conflict would have major impacts. He felt the conflict would resolve itself relatively quickly, and long-term investors should not worry about making any big changes to their portfolio while the conflict continues.
His advice: "Stick with your objectives. Stick with your your allocation. And, you know, I think that this will be, you know, another short term thing on the market."
