Price elasticity of gasoline/diesel

The war in Iran is now in its fourth week, and the end isn’t in sight.

- Ruben Almendras

The price of crude oil has risen by 65% to over $100 per barrel, and along with it the prices of natural gas, fertilizer, asphalt, and all derivatives from crude oil. The prices of transport and all commodities with delivery components, together with power generation that use fuel oil, are also up.

All these price increases immediately push up the inflation rates in all countries, which may lead to economic recession or even depression, depending on their dependency on fuel oil and the status of their economies. Poverty, especially food poverty in developing countries. will worsen economic hardships.

With the ongoing Ukraine and Gaza war, this Iran war is an unnecessary war that killed thousands of people, destroyed productive facilities, and wreaked havoc on the world economy. Four weeks have destroyed billions of dollars in oil production, stalled the delivery of billions of goods and services, and cost the U.S. and Iran $20 billion and $2 billion in military expenses, respectively. It has stopped 50% of all economic activities in Middle Eastern countries with their airports closed and no tourism activities.