War with Iran’s impact on oil prices could lead to higher prices on more goods in Houston area

HOUSTON, Texas (KTRK) — The ongoing war in Iran is more than 7,000 miles away from the Houston metro area. Despite the distance, the war is affecting the U.S. economy.

“What we’re seeing is that very little oil, petroleum products, and refined products are getting out of the Persian Gulf through the Strait of Hormuz, so it’s having a domino effect in global energy markets,” University of Southern California Professor Shon Hiatt, Ph.D., said. “Almost all plastics use petrochemicals. They use butane as the major component and the foundation block of all of our polymers and plastics.”

Items people often use, such as plastic combs, some toys, and some clothing, are made from petrochemicals.

If the war continues, the price increases could come within a matter of weeks, according to Hiatt.

One of the major reasons for the price increases is due to decreased activity in the Strait of Hormuz.

Approximately 20% of the world’s liquid fuels passes through the area, according to the U.S. Energy Information Administration.

Experts predict it could take weeks or even months after the war ends for oil-based goods affected by the war to return to pre-conflict prices.

U.S. leaders said the operation will last approximately one month.

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