Economist Henrietta Treyz warned this weekend not to expect prices — which have already been driven up by President Donald Trump’s Iran war — to fall anytime soon.
Even if the Strait of Hormuz, the vital channel off Iran’s coast through which roughly one-fifth of the world’s oil passes, fully reopened tomorrow, it would still take about 200 days for prices to return to normal, she said on MS NOW.
But that scenario of the strait reopening so soon is unlikely, the Veda Partners co-founder and director of economic policy told anchor Erielle Reshef.
It means higher prices are here to stay, she said, with soaring crude oil costs rippling across the economy to drive up prices in multiple sectors.
“So, if you’re trying to buy an airline flight, if you’re trying to do anything, the costs of this war are going to trickle down across the entire economy and it’s going to cascade for literally years to come,” she said.
She later warned consumers should brace for “higher interest rates, higher gas prices, higher food prices, jet prices, semiconductor prices. I mean, you name it, it’s across the economy now,” she added.
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