The Ongoing war between Russia and Ukraine is not slowing down anytime soon. The first talks between the two delegations yielded no positive outcomes, but this was no surprise to anyone. As the budding war goes on, tensions between Russia and the West rise, and they are facing sanctions from just about every industry imaginable. From their central banks, to the entertainment and world sports competitions like FIFA, the West and their allies are attacking Russia from every angle. Another major industry in which sanctions are being imposed and have a worldwide impact is the oil and gas industry.
Shell has ended their joint ventures with Gazpron, a giant Russian energy company. How does all of this affect Americans on their native soil? Oil and natural gas prices in America recently spiked due to the war in Eastern Europe. Some Western countries rely heavily on oil and gas from Russia, and although many sanctions were placed on Russia, prices of these energy sources still rose because of the potential disruption of oil and gas flow patterns. As if U.S. inflation wasn't already at its highest point since the 1980s, the war is also causing an even higher U.S. inflation rate at about 7.5%. This trend could continue because if the Fed wanted to correct it by raising interest rates, markets could tank. In an article by Patricia Cohen in the New York Times, she says:
"In the United States, the chair of the Biden administration’s Council of Economic Advisers, Cecilia Rouse, said the biggest impact on the American economy from the war was rising gas prices. “This has definitely clouded the outlook,” she said at a forum in Washington.
Gasoline prices are roughly a dollar higher than a year ago, with a national average of $3.61 a gallon, according to AAA.
Rising energy prices are tough on consumers, although good for producers — and the U.S. economy has both."
As Americans, this war has a massive impact on our economy. It is important that the U.S. officials handle American involvement in the war delicately so that we limit the negative effect as much as possible. I think it is important for the U.S. to be involved and unite with allies and other Western countries to combat the Russian invasion, but they must do so while making sure to preserve our economy to the best they can. Although economical regression is probably unavoidable during a time of war due to the many factors and sanctions that are involved, Americans need to be careful. Russia is a major world power, and no one wants to ignite a war bigger than it already is.
Gas prices are annoying and a little stressful, but to compare that to the feeling all Ukranians have is petty. We can avoid reading headlines about the War in Ukraine, but we can't ignore the increased gas prices? Boo hoo. America is the world power that makes war still fashionable and now we're so hurt because a war has negative consequences for us. At least we aren't actually at war. At least the only thing that is affecting us is an extra expense. I feel like the emotional response to the war in Ukraine matched the emotional response to higher gas prices and I find that disgusting. Have a heart and stop being so selfish America.
When I came to LA from the East Coast I was shocked by the gas prices. How could that even be possible?! When I saw because of the war gas prices in LA skyrocketing I was very concerned. I recently went home and paid way more attention to gas prices in New Jersey and those two had skyrocketed. It scared me a bit because for someone that seems so far from us, our lives seem so normal, the economy is being greatly affected.m
Living in Southern California my entire life, high gas prices have never been something out of the ordinary. While this is true, in recent weeks I have seen the prices skyrocket. Even someone who is entirely unaware of world news could walk by a gas station, and see a significant change. The U.S.'s economy is extremely reliant on numerous countries for resources, and it's daunting to watch a war occuring thousands of miles aways that we all know will have major financial and economic repercussions for us. As of now, gas is definitely the most noticeable factor that's been affected in my life, but I am anxiously awaiting the next trickle down effect to occur.