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Weekly Briefing

Weekly Briefing - Oil tops $100 as U.S.-Iran clashes flare, inflation heats up

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Here is the week in economics, explained without the jargon.

Oil crosses $100 again

The U.S. and Iran traded strikes over the weekend, including U.S. attacks on Iranian oil tankers, and Iran-backed Houthi militants fired drones and missiles at Saudi energy facilities. Oil climbed for six days straight, and U.S. crude topped $100 a barrel for the first time since May. Because so much of the world’s oil passes through the Strait of Hormuz, any fighting there makes traders worry about supply - and prices jump.

Stocks stumble, then bounce

Stocks fell for four days in a row as investors worried about the conflict and what higher energy costs mean for the economy. They bounced back on Friday when oil prices eased a little. Gas prices followed oil up, with the national average jumping 13 cents in a single week to about $4.27 a gallon.

Inflation speeds up

Consumer prices rose 0.4% in August alone and 3.4% over the past year. Gasoline was the biggest driver, jumping 3.9% in a month and accounting for more than a third of the overall increase. After the report, traders bet heavily that the Fed would raise interest rates at its meeting the following week.

What it means for you

When oil prices spike, you feel it first at the gas pump, then in the price of anything that has to be shipped. If you can, it’s worth planning for higher fuel and grocery costs over the next few weeks.

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