SANTA CLARA, Calif. (KGO) — The effects of the war in Iran are beginning to hit Americans’ wallets, especially here in the Bay Area.
From groceries to gas, the United States’ involvement in international conflict is costing ordinary Americans.
LIVE UPDATES: Trump offers immunity or ‘guaranteed death’ to Iranian forces
“It’s going to be very difficult to identify all the different types of ramifications for us as individual U.S. citizens, but certainly I can say that there will be,” SJSU Professor of Business Caroline Chen said.
We’re seeing the ramifications already.
Driving around Santa Clara on Thursday. We saw gas prices at around $5 and more than $6 per gallon.
National Petroleum CEO Sanjiv Patel says the price at the pump is high because crude oil prices are rising as the supply dwindles.
The closure of the Strait of Hormuz off the coast of southern Iran is choking the world’s gas supply – one-fifth of the global supply of crude oil and liquid natural gas travels through the strait.
RELATED: Dow closes down 785 points as selloff sends stocks tumbling
So, just how hard is it on owners throughout the country, especially here in the Bay Area?
“For a smaller businesses, right, like one mom and pop with one station owner for them, the gas margin is a pretty significant portion of their profitability,” Patel said.
Right now, Patel says margins are razor thin, or even negative in some cases – meaning stations are losing money and may be forced to close unless drivers pay more for their gas, convenience items or credit card fees.
“If this thing prolongs, if the war goes for another 2-3 months, then the gas stations will have a major impact,” Patel said.
Rising gas prices also mean higher shipping costs, which in turn lead to higher grocery prices.
And with overall volatility in the world, interest rates and the financial market are impacted, too.
Chen says she is unsure when we might see a reprieve.
“The current administration has indicated that it believes that the war will only last, let’s say, two weeks,” Chen said. “But, we don’t know how long this is going to last and we certainly don’t know what the overall ripples will be through our own economy.”
Copyright © 2026 KGO-TV. All Rights Reserved.