Economist Peter Schiff warns that a severe financial meltdown is imminent following a sharp spike in U.S. import and export prices, compounded by massive global oil shocks.

Following a significant jump in U.S. import and export prices, economist Schiff is issuing a dire warning to the markets and the Federal Reserve. Schiff declared on X that the U.S. is “headed for a full-blown financial crisis,” pointing to the latest inflation indicators as a harbinger of economic disaster.

According to Schiff, the situation is already critical, noting that “February import prices spiked 1.3% while export prices surged 1.5%.” He calculated that these surging numbers are “annualizing to inflation rates of 16.8%–19.6%.”

We are headed for a full-blown financial crisis. February import prices spiked 1.3% while export prices surged 1.5%, annualizing to inflation rates of 16.8%–19.6%. That’s before oil rose 50%. Unless the Fed raises rates several hundred basis points now, inflation will skyrocket.

— Peter Schiff (@PeterSchiff) March 25, 2026

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Schiff’s stark warning aligns directly with the official U.S. Bureau of Labor Statistics summary released on March 25, 2026. The BLS reported that U.S. import prices increased 1.3 percent in February.

This represents the largest monthly increase since the index rose 2.9% in March 2022. The BLS noted that higher prices for nonfuel imports and fuel imports drove the increase in February.

Simultaneously, prices for U.S. exports advanced 1.5% in February. This marks the largest monthly advance for exports since the index increased 2.7% in May 2022.

The backdrop of geopolitical tensions and an escalating Iran war has brought intense focus to the energy markets. Schiff emphasized the terrifying reality that the alarming February numbers were recorded “before oil rose 50%.”

Even within the February data, energy costs were rapidly climbing. Import prices for fuels and lubricants increased 3.8% in February.

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Within that category, natural gas advanced 24.7%, and prices for imported petroleum and petroleum products increased 2.5%.

In response to this mounting pressure, Schiff offered an ultimatum to the central bank. “Unless the Fed raises rates several hundred basis points now,” he cautioned, “inflation will skyrocket.”

At the last check after Wednesday’s market close, the S&P 500 index tumbled 3.89%, whereas the Nasdaq Composite and Dow Jones declined 5.62% and 4.04%, respectively, year-to-date.

On the other hand, the ETF tracking WTI Crude futures, United States Oil Fund LP, has risen 62.59% in the same period.

Meanwhile, the SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF, which track the S&P 500 and Nasdaq 100, respectively, closed higher on Wednesday. The SPY was up 0.56% at $656.82, while the QQQ advanced 0.66% to $587.82.

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This article Peter Schiff Warns Of ‘Full-Blown Financial Crisis’ Looming After February Import Price Spike Amid Iran War originally appeared on Benzinga.com