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

The war in Iran has just taken down 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, worsening the cost of living.So in today's video, I want to tell you what's happening and how this affects 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.So I want you to take a look at this.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 a year ago, which means a 40 % jump in just one 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 us as well as the US economy?Well, this simply means that for us as Americans, we have to now spend more money just to get to work, to run errands, for day -to -day activities, which means that there's going to be less money to spend everywhere else.You know, less money to be spent on restaurants, less spending on travel, less spending on discretionary items, less spending on basic goods.

And when millions of consumers, they're going to all pull back at the same time, just like that, that's going to, of course, slow down the economy.But I'm telling you, this is just the beginning if there's no de -escalation.So I just want to say that most people that are watching this, they probably get it.They have a better understanding of the financial and economic landscape and how everything's impacted.But most Americans, they don't even realize what's going on.Because higher energy prices, it's not going to just stop at the gas pump.

It doesn't end there.Energy is a core input into almost everything that goes on in the economy.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 the U .S.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 one year.And I just 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 to a new PR.

Okay, keeping that in mind, let's focus our attention onto food prices.I 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, even to restaurants, they're shipped in trucks.And of course, what do trucks run on?They run on diesel fuel, at least the overwhelming majority of them.And then we have to acknowledge the other problem with an agriculture, which is fertilizer.

So fertilizer production relies heavily on natural gas and energy inputs.And when energy prices rise, then the 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 gonna get passed on to consumers.So that's what's waiting for us.That's what lies ahead.

But I just want you to know that if you 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.So listen, I'm sorry to be the bearer of bad news, but I just want everyone to be informed that the cost of food is gonna go up noticeably.So it's kind 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 longer window of time and it's not going to be just the grocery store it's going to be a restaurantas well.

Because of higher diesel fuel prices, higher fertilizer prices, and higher transportation costs.So I just want you to know that when these higher energy costs get passed on to consumers, that's what's called second round inflation.So it starts with energy, but then it's going to spread into everything else.So higher costs are now working their way through 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, Spirit Airlines, they've been struggling financially for the past few years, but it's the surge in the price of jet fuel that appears to have been the final blow.

And just so you know, crude oil gets refined into multiple products.So we're talking about gasoline, diesel, jet fuel, heating oil, et cetera.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 dropped the ball on this in the past few recent years, and none of this really needs to happen.Anyway, 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 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.They're just simply trying to get back home.

Like, do you know the price difference of booking well in advance versus booking the same day or, you know, the next day?The price difference is going to be huge.I mean, just look at the lady in the picture.I mean, I know how she feels.It's terrible.I was actually having this conversation 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 and you're making a big deal about how they're gonna miss a vacation.

But look, from my perspective, people work hard to save money for a family vacation or get to a place 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 Americans just lost their jobs overnight.And to speak honestly, this was a direct result of the war on Iran.You know, actions have consequences and there's going to be more consequences to come if this war doesn't come to an end right quick.

Listen, war is a combination of military, manufacturing, logistics, and economics.So I, you know, I don't want to hear that propaganda that everything's going fine and dandy.It's not.Just look at Spirit Airlines.Look at gasoline prices.You just watch food prices.

Now, let's take this one step further into the financial system, because this is also affecting interest rates.Now, when inflation expectations go up, interest rates on bonds go up as well.And the consumer interest rates are going to follow it higher.OK, because of the war in Iran, interest rates on US government bonds have gone up.and this has caused interest rates on mortgages to go up.So this is a one -year chart of the 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%.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.But then of course, I mean look at that trend.

The war just totally derailed it.So believe it or not, if you're trying to buy a home, you know, get a get a mortgage, interest rates important to you, the mortgage interest rates important to you, or if you're trying to refinance, you got, you know, unfortunately screwed over by the Iran 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 mortgages, auto loans, business loans, credit cards, etc.Now, with rising energy costs, economists often refer to it as a hidden tax on the economy.

Because unlike a traditional tax, this money the higher energy costs that we're paying, it's not gonna, you know, that money is not gonna go to the government's government programs or stimulus.It's just simply getting redirected into higher energy costs, which means that money's gonna disappear from discretionary spending.And of course, that's gonna have a ripple effect.Okay, what do I mean by a ripple effect?I mean, 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 that have lost their jobs too, that work with Spirit Airlines.

Think of all the businesses and small businesses that provided products and services to Spirit.It's a bad situation, especially in a highly leveraged and 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, which is really interest rates and money printing.Because these policymakers, they don't have easy solutions.If they raise interest rates, 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.

just fueling inflation.And that's why this situation is 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 is about a chain reaction that's already spreading through the entire economy.

And we are still in the early stages because the full impact of higher energy prices has not been hit yet.So I just wanted to give you a status update, I guess with the details on how this war has been affecting us here economically in the states.Now has this been affecting Iran economically?The answer is of course, like obviously they're suffering too.But the longer that this drags on, the situation for both parties is just going to get worse.Anyways, that's all for today.

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