Iran War is Now Hitting the U.S. Economy — Spirit Airlines Shut Down

[00:02] Spirit Airlines along with 17,000 jobs for Americans. And as you probably know, the price of gasoline continues to rise. The rate of inflation is accelerating, So, in today's video, I want to tell you what's happening and how this affects

[00:17] us. Let's begin with the most immediate impact, gasoline prices. When the price of oil rises, gasoline prices follow almost immediately. And that's exactly what we've seen since the conflict escalated.

[00:31] Currently, the average price of gasoline has shot up to $4.44 a gallon in the United States of America. So, that's higher than a week ago, that's higher than a month ago. Gasoline averaged $3.17

[00:45] a year ago, which means a 40% jump in just 1 year. So, the record high was at $5.01, so that was set on June 14th of 2022. And take a look, we're getting close to there. Anyways, what does this mean for

[01:00] us as well as the US economy? Well, this simply means that for us as money just to get to work, to run errands, for day-to-day activities, less money to spend everywhere else. You know, less money to be spent on

[01:16] restaurants, less spending on travel, less spending on discretionary items, less spending on basic goods. And when millions of consumers, they're just like that, that's going to of course slow down the economy. But I'm

[01:30] telling you, this is just the beginning if there's no de-escalation. So, I just watching this, they probably they understanding of the financial and economic landscape and how everything's

[01:43] impacted, but most Americans, they don't even realize what's going on. even realize what's going on. Because higher energy prices, it's not doesn't end there. Energy is a core inputs into almost everything that goes

[01:57] And we're talking about manufacturing, transportation, packaging, farming, you know, all of it depends on energy. So, when energy prices surge, it's going to of course cause a chain reaction. Now, I want to show you this. The average in

[02:12] the US for a gallon of diesel fuel is now $5.64. It was at $3.55 a year ago, which is a 59% increase in just 1 year. And I just

[02:24] want you to know that the record high was at $5.81 set on June 19th of 2022. So, that one as well, we're getting close. It's a new PR. Okay, keeping that in mind, let's focus our attention onto food prices. I

[02:39] just want to bring to your attention that tractors run on diesel fuel. And when you're looking at the supply chain, when food is loaded onto trucks to deliver to the grocery store or even to restaurants, they're shipped in

[02:52] run on? They run on diesel fuel, at least the overwhelming majority of them. other problem with American agriculture, which is fertilizer. So, fertilizer production relies heavily on natural gas and energy inputs. And

[03:07] fertilizer is going to become much more expensive. So, farmers are facing right now higher costs to grow crops. And then of course, that cost, the higher cost is going to get passed on to consumers. So, that's

[03:20] what that's what's waiting for us, that's what lies ahead. haven't seen it yet, food price inflation doesn't happen immediately. So, food inflation tends to show up months after the initial energy shock.

[03:35] of bad news, but I just want everyone to be informed that the cost of food's of like how you're seeing gasoline prices just steadily go up. That's what's in store for us for food prices, but it's going to happen over a

[03:50] And it's not going to be at just the grocery stores, it's going to be at restaurants as well. Because of higher diesel fuel prices, higher fertilizer prices, and higher transportation costs. So, I just want you to know that when

[04:03] these higher energy costs get passed on to consumers, that's what's called second-round inflation. So, it starts with energy, but it then it's going to spread into everything else. So, higher costs are now working their way through

[04:15] the supply chains and inflation expectations are rising meaningfully over the coming months. And now, we have a major casualty from the Iran war, Spirit Airlines. But to be fair,

[04:28] financially for the past few years, but it's the surge in the price of jet fuel blow. And just so you know, crude oil gets we're talking about gasoline, diesel, jet fuel, heating oil, etc.

[04:45] And since the price of oil has shot up, so has the price of jet fuel. And listen, I just want to say that what happened with Spirit Airlines is truly sad, like it really is. Because if you know the backstory, it's Congress that

[04:58] dropped the ball on this in the past few recent years, and none of this really Anyways, 17,000 Americans were all of a sudden laid off. And listen, you know the stats, more than 60% of Americans are living paycheck to paycheck. And

[05:13] then this happens to 17,000 Americans without any notification. And how about the people that Spirit just left stranded? They're trying to get back home. Like, do you know the price difference of booking well in

[05:27] advance versus booking the same day or, difference is going to be huge. I mean, just look at the lady in the picture. I mean, I I know how she feels, it's terrible.

[05:40] the other day, and listen, I cannot belittle the fact that people got their Spirit flight canceled. You know, some people might say, "Brian, 17,000 Americans just lost their jobs,

[05:54] and you're making a big deal about how they're going to miss a vacation." But look, from my perspective, people work hard to save money for a family vacation or get to get to a place

[06:08] that's priceless. We're talking about a wedding, a birth of a family member, a funeral. You know, at least to me, that's not fair to belittle and make their situation sound unimportant. So, 17,000

[06:22] Americans just lost their jobs overnight. And to speak honestly, this overnight. And to speak honestly, this was a direct result of the war on Iran. there's there's going to be more consequences to come if this war doesn't

[06:35] come to an end right quick. Listen, war is a combination of military, manufacturing, logistics, and economics. So, I I I don't want to hear that propaganda that everything's everything's going

[06:50] fine and dandy. It's not. Just look at Spirit Airlines. Look at gasoline prices. And you just watch food prices. Now, let's take this one step further into the financial system, because this is also affecting interest rates.

[07:03] Now, when inflation expectations go up, interest rates on bonds go up as well. And then consumer interest rates are going to fall at higher. Okay, because of the war in Iran, interest rates on US government bonds

[07:17] have gone up. And this has caused interest rates on mortgages to go up. average interest rate on a 30-year fixed mortgage. In May of 2025, the average interest rate on a 30-year fixed was around 6.9%.

[07:32] It steadily fell to below 6% at the end of February 2026. And that's a big deal if you're trying to buy a home, if you're trying to refinance, and especially if you're refinancing from 7.5% or higher.

[07:47] But then of course, I mean, look at that trend, the war just totally derailed it. to buy a home, you know, get a get a mortgage, interest rate's important to important to you, or if you're trying to refinance, you got, you know,

[08:02] war. And again, if this situation doesn't get resolved, then it's going to get worse. The mortgage interest rates are going to go higher. Bond yields are going to go up along with interest rates on

[08:15] mortgages, auto loans, business loans, credit cards, etc. Now, with rising energy costs, economists often refer to as a hidden tax on the economy. Because unlike a traditional tax, this money

[08:31] paying, it's not going to, you know, that money's not going to go to the stimulus. It's just simply getting redirected into higher energy costs. Which means that money's going to disappear from discretionary spending,

[08:45] ripple effect. Okay, what do I mean by a ripple effect? I mean, just just look at what happened to Spirit Airlines. Not only did 17,000 Americans just lose their jobs, but I want you to think of all the contractors

[09:00] work with Spirit Airlines. You know, think of all the businesses and small businesses that provided products and services to Spirit. You know, it's a bad situation, especially in a highly leveraged and

[09:13] interconnected world that we live in. And I just want to say, don't expect the Federal Reserve to be able to solve this problem with their disposable tools, you know, which is really interest rates and money printing. Because I mean,

[09:26] these policy makers, they don't have easy solutions. you know, they're going to risk slowing down the economy even further. If they cut interest rates, then that's going to jeopardize the inflation situation by

[09:40] just fueling inflation. And that's why this situation so important to watch. So, this is not just about one airline. It's not just about gasoline prices. It's not just about inflation. This about a chain reaction that's already

[09:55] spreading through the entire economy, and we are still in the early stages. Because the full impact of higher energy prices to give you a status update, I guess with the details on how this war has

[10:08] the States. Now, has this been affecting Iran course, like obviously, you know, they're suffering too. But the longer that this drags on, the situation for both parties is just going

[10:22] Anyways, that's all for today. Please subscribe. Thank you for the support, and I wish you a very nice day. Take care.