The stock market has moved up and down in concert with news that hostilities are heating or cooling. The biggest single-day drop came on March 26.
Given the uncertainties around the aims, timeline and spread of the conflict, it’s hard to know what lies ahead. The wealthiest investors stand to lose the most dollars from downtrends, but they have a bigger proportional effect on the 70 million Americans with retirement accounts.
Soaring gasoline prices have made news, but the cost of filling a gas tank isn’t the only way residents in U.S. communities can be affected if the cost of oil goes up. Higher costs for diesel fuel and fertilizer can push grocery prices higher. The cost of heating homes and businesses increases. Fuel costs cut into the margins of local businesses and industries. These all add to overall inflationary pressure.
In states with lower income and higher oil dependency, the tensions can be greater. Data on per capita oil use published by the U.S. Energy Information Administration offers perspective on the possible state-to-state scale of these impacts.
There is nuance within these numbers. It would be reasonable to assume that in California, where drivers pay the most for gasoline, lower per capita use might be offset by significantly higher prices. However, in 16 states, per capita spending on gasoline is higher than it is in California. This is partly a reflection of strict fuel economy standards.
