The ongoing conflict in Iran is beginning to have unexpected repercussions for the U.S. economy.
With oil supplies tightening due to the closure of the Strait of Hormuz, gas prices are already rising. Industry experts are now warning of an impending shortage of lubricants that are derived from specialized base oils.
“This will affect not just consumers, but also industrial enterprises that depend on machinery, which will, in turn, impact costs and supply chains across the economy,” one expert noted.
In internal communications, both Toyota and Nissan have indicated that their service centers are running low on motor oil, resulting in increased prices.
“Continued global supply constraints stemming from the Middle East conflict are affecting essential raw materials and refining inputs, resulting in reduced production capacity for most lubricant products,” a bulletin from Nissan stated.
The bulletin indicated that the availability of some motor oils could drop by as much as 45%.
A spokesperson from Nissan confirmed the authenticity of the report, stating, “Nissan is collaborating closely with its suppliers to track current oil supply issues. We are committed to supporting our dealers and ensuring a high level of service for our customers.”
This shortage may intensify pressure on the administration to negotiate a cease-fire with Iran and restore tanker traffic through the Strait. President Trump has firmly opposed the Iranian regime’s recent negotiation attempts, labeling them as “garbage” and “unacceptable.”
Economic analyst Carol Ross, contributing to Blaze News, pointed out that the lubricant shortfall could have implications for the midterm elections.
“Motor oil and lubricants represent just a small fraction of the 6,000 products derived from oil that are affected by the conflict with Iran,” Ross explained. “Retailers and auto dealers have reportedly been urged to prepare for unprecedented shortages, which will impact both consumers and industries that rely heavily on machinery.”
“While we haven’t seen a major backlash against politicians regarding the midterm elections just yet, we are inching closer to that point daily,” Ross added.
On Tuesday, the Bureau of Labor Statistics announced that the inflation rate surged to 3.8% in April, which many attribute to the U.S. and Israeli actions against Iran.
A recent CNN/SSRS poll revealed that around two-thirds of Americans feel the president’s policies have aggravated economic conditions.
