Effects of war in Iran are beginning to hit Americans' wallets, especially in Bay Area

"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."

"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. Right now, 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. Rising gas prices also mean higher shipping costs, which in turn lead to higher grocery prices."

The conflict involving Iran is creating economic ripple effects for American consumers, particularly in the Bay Area. Gas prices have surged to $5-$6 per gallon due to reduced crude oil supply caused by the closure of the Strait of Hormuz, which normally carries one-fifth of global crude oil and liquid natural gas. This supply reduction drives up prices at the pump and increases shipping costs, leading to higher grocery prices. Small gas station owners face razor-thin or negative profit margins, potentially forcing closures unless customers pay more for fuel, convenience items, or credit card fees. Financial markets and interest rates are also affected by global volatility. Economists express uncertainty about when relief might arrive.

Read at ABC7 San Francisco