If you don’t think a Russian invasion into Ukraine would affect the average American, think again.
One way is in the cost of oil, which is already at a seven-year high and would almost certainly go higher if Vladimir Putin moves troops into Ukraine.
Russia is the second-biggest oil producer globally and trails only the United States.
Ukraine has become a vital energy transit hub and has a vast amount of Russian natural gas exports flowing through there on the way to Europe.
Despite Joe Biden’s incoherent messaging on what the US would do if Russia staged any invasion, it’s accepted that it would trigger immediate sanctions on the energy resources of Russia. That would damage the energy infrastructure in the region and consequently raise prices.
The price of a barrel of crude oil Thursday is roughly $87. Still, an invasion would make that number seem like a bargain, according to Robert Yawger, director of energy futures at Mizuho Securities. Here’s what he told CNN.
“There is a very good chance we would reach $100. That’s going to be inflationary with an exclamation point.”
Gas prices would undoubtedly skyrocket. The national average Thursday, according to AAA, is $3.32.
Natural gas prices would also go up, and Europeans would be feeling the most pain because that continent relies on Russia for their natural gas.
During his press conference Wednesday, for the parts about a possible Ukraine invasion that made any sort of rational sense, Biden tried to talk tough, saying there would be “severe costs and significant harm” to the Russian economy.
Economists believe sanctions on Russia would make inflation in the US even worse than it already is.