• History of the United States
  • Economics
  • History of the Middle East
  • Middle East

How does the current situation in the Middle East affect the US economy?

User Avatar

Wiki User

βˆ™ 2011-09-04 15:40:37

Best Answer

An interuption in supply and demand and economic warfare, coupled with unfair business practices in the US causes the price of fuel to rise. During the original invasion of Iraq, tanker traffic in the Persian Gulf was drastically cut for fear of losing ships and cargo. This caused a minor shortage of crude oil. OPEC only sales crude, it is refined (distilled) locally. In capitalist free markets, suppliers are allowed to raise prices during shortages, so that they can outbid other consumers when replinishing their crude. Unfortunately, OPEC realized that countries were willing to pay this extra price and refused to lower their price when pre-war supply was restored. OPEC denies this, but the US has captured documents that proves OPEC intentionally inflated prices. Now, because gas prices go up, it costs more for the shipping and trucking companies to do business. A large percentage of what you pay for a gallon of milk comes from the shipping cost of getting it to your grocery. Don't believe me, check the price of produce at a farmers market co-op compared to grocery stores. The price of gas effect the price of every thing in our economy.

2011-09-04 15:40:37
This answer is:
User Avatar

Your Answer


Related Questions

How did geography affect the economy of the middle colonies?

The affect that geography had on the economy of the middle Colonies was to help the economy. Farming was the main source of the economy and the fertile soil, and natural resources aided the Middle Colonies economy.

How does technology affect economy?

There are TONS of ways technology affects economy but one is that with technology, people lose their jobs because technology has gotten so good that it replaces people. When there are less jobs it affects the economy, as you can see by our current situation.

What factors affect your current financial position?

Overhead expenses, the economy, and poor credit.

How did the us handling of the post world war 1 debt situation affect?

Helped Americas economy

Why do estate-valuers surveyor needs economics?

The state of economy affects values of objects and property. They need to understand the affects of inflation and how it affect value. And they definitely have to understand supply and demand and what the current situation is.

How current events affect the economy?

Current events affect the economy on an hourly basis. If you follow the stock market you know that any negative events that happen in the world immediately affect the stock market. Good news makes the market go up and negative news makes the market go down.

What is the current situation for Switzerland's job market?

The current situation for Switzerland's job market is regarded as fair. Like most countries around the world today there are economic issues that affect industry and jobs.

How does the marketing affect the economy?

how does affect the all economy

How did geography affect life and economy in the Middle colony?

I dont know i just came here to look for the answer.

What is political problem?

A political problem is a situation which has caused conflict and is related to politics. Such problems will often affect the economy of a country.

How do bio-fuels affect the economy?

it does not affect the economy

How could the current political situation in Europe and northern Asia affect local economy?

Put it this way, if Harry Hill was still doing TV Burp at the break it'll feature Europe and Northern Asia. Just imagine the costumes

How does Obama winning the Nobel Peace Prize affect your economy?

It has no affect on the economy at all, since he has done absolutely nothing to deserve the award. Everything that Obama has done has only had a negative, damaging affect on the economy. This fits in with his plan to cause a crisis situation in order to institute socialist policies in what, until now, has been the most free country in the world's history.

How the interest rate affect the SA economy?

how interest rates affect the sa economy

How did new roads and canals affect the economy?

The roads and the canals affect the economy because

How does the economy affect business?

how does economy affects business

How did the Labrador current affect the Titanic?

The sea of icebergs came from the Greenland Glaciers, and it was carried there by the Labrador Current. So, very likely the Titanic was in the middle of the Labrador Current, and the water temperatures that faithful night was also due to that current.

What is negative inflation and how does it affect the Indian economy?

negative inflation mean there is decrease in thevalue of good but at slower is a situation where there is no demand in the economy as there is no supply of money in marketits not good for economy as the supplier donot find demand for their good in the market as a result they have to shut down their enterprises..and the economy growth start declining

Does an electric current affect weight?

No, an electric current does not affect weight.

How did Hoover's efforts affect his political situation?

How did President Hoover's efforts affect his own polical situation?

How did the nationalization of markets affect the economy?

the economy experienced panics

How do drugs affect the economy?


How does inflation affect the South African economy?

Inflation in the South African economy affects all classes of citizens. Studies show even the middle class survives off less than $1.30 a day.

How will the current economy affect the sports and entertainment industry?

No one will come to games,shows,etc. and no money will be made to support them so it will decline greatly.

How does HIV affect the economy?

how does hiv affect our economy 'Philidelphia' gave Tom Hanks career a big boost.