How an Escalation in Middle East Tensions Could Affect the U.S. Economy [Video]

Recent tensions in the Middle East may not create a big impact for the U.S. economy, analysts said, but that could change if things escalate and drive up oil prices. 

After Israel and Iran recently exchanged drone and missile strikes, the recent standoff may come to a close, Wells Fargo said in a commentary. Forecasters at the bank wrote the conflict was likely to remain “contained” and have minimal impact on the U.S. economy. Unlike when conflict over Israel’s offensive against Hamas created issues with attacks on shipping traffic, analysts said they didn’t expect the recent flare-up to create additional problems with cargo ships. 

“Under the assumption that conflict in the Middle East does not escalate, we do not anticipate any disruptions to global economic activity,” Wells Fargo wrote.

While the U.S. economy’s strength may shield it from the direct impacts of the conflict, Oxford Economics’ Ryan Sweet pointed out that could change if oil prices moved higher …