Americans Cut Back on Food Spending to Afford Fuel

US officials are studying the potential economic impact of a sharp rise in oil prices to $200 per barrel, as escalating tensions around Iran fuel uncertainty in global energy markets. Scenario Planning, Not a Forecast According to Bloomberg, the scenario is not a formal prediction but part of standard contingency planning carried out during periods of geopolitical instability. Such modeling is intended to prepare policymakers for a range of possible developments, including prolonged conflict. The analysis was described as a routine exercise designed to assess how extreme energy price shocks could affect the US economy under worsening global conditions.