SALT LAKE CITY (ABC4) — As gas prices in Utah have spiked because of the conflict in Iran, Utahns are worrying about the economic impact this is going to have, and unfortunately, many other prices are likely to go up.
ABC4 met with professor of management and business history Mark J. Crowley from the David Eccles Business School at the University of Utah to talk about the economic impacts the conflict in Iran will have on Utah and the prices Utahns pay for everyday items.
Crowley explained that the prices we pay for goods in Utah are not just determined locally. They are also influenced by national and global factors, especially when imported from China or other countries. There is the price at the port of entry, which is affected by the cost of oil for the cargo ship and the cost of transporting the items from the port of entry to Utah.
Utah gas prices soar as Middle East tensions rise
“How does it get from there? Does it go on a plane? Does it go on a truck?” Crowley said. “And what we need to consider is that even though there’s been a lot of effort lately to divest from globalization and to try to establish a much more energy independent United States, for which there is a lot of wisdom to that policy, we still need to remember that many of the things we buy […] are controlled by oil prices that have been determined globally.”
Conflict in Iran impacts Utah
Crowley explained that this will affect Utah both economically and politically. The economic reaction is going to be driven by the prices of oil and gas…