The Dow Jones Industrial Average surged approximately 1,300 points, according to the associate press, in a worldwide rally following the announcement
The drop comes after oil prices surged past $100 a barrel due to Iran restricting passage through the Strait of Hormuz, a key waterway which acts like the “main artery” for the global economy. Al Biss, a partner at LMB Wealth Advisors, powered by Leonard Martin’s Biss, said the biggest impacts Alaskans could see is the cost of fuel.
“When you’re looking historically in the last 15, 20 years, oil’s been over $100 a barrel back in 2008 and 2009, then most of 2011 to 2014,” Biss said. “Had a spike up in 2022 with Russia going into Ukraine. And now we’re seeing it again. “That’s the big one we’re seeing right now. And just uncertainties in general in markets and those sorts of things because of just not knowing what’s going to happen there.” As of Wednesday, the average price of a gallon of gas in Alaska was $4.63, up over 70 cents from a month earlier.“Anytime you see market volatility, there’s going to be uncertainty,” Biss said. “So it’s a natural part of that. So I’m getting more questions now than I usually do.”“Most of my clients have been with me for quite a while, and they always know, look, this is part of investing, especially in stocks,” Biss said. “On average, once a year, you’re going to see a 10% drop. We don’t know what’s going to cause that. Right now, it’s Iran. Last year, it was tariffs. There’s always something that comes along that gives you volatility in the market.” Since the news of the ceasefire on Tuesday, Biss said the markets have gone up. The Dow Jones Industrial AverageHe said since it has been only a day, people should not expect to see changes in prices of goods anytime soon, despite the jump in stock prices. “There’s the excitement of hopefully some certainty. Markets hate uncertainty,” Biss said. “And when you start to see wars and especially — not so much the war as supply chains, fuel deliveries, stuff getting through the Strait of Hormuz — that gives us uncertainty on markets going forward and also on earnings. “The big thing with stocks is what’s the company earning that I’m investing in? And we haven’t really seen earnings get pulled back or reduced at all recently.”“Even with some of the news that’s come out most recently about — we’re not quite sure how effective the ceasefire is going to be or how long it’s going to last, but the market as of a few minutes ago was still up nicely,” Biss said. According to Biss, Iran makes up less than half a percent of the world’s Gross Domestic Product, or GDP. However, since the Strait of Hormuz filters a lot of fuel and other goods, this can impact the overall world economy.“The United States is fairly well insulated from most of that. We don’t get much in the way of fuel through there,” Biss said. “You’re going to see a lot bigger effects in Asia and Europe because they’re much more dependent on oil going through the Straits of Hormuz.”“It boils down to price of fuel for us locally,” he explained. “It’s not like we’re getting a lot of goods and services sent through there.” Biss noted that spillover effects could eventually reach Alaskans through higher input costs for goods manufactured abroad. “So maybe the inputs of expenses in building something in China because their price of their fuel went up. Transportation of goods here in the States, fuel prices are higher,” Biss said. “Really, immediately, other than fuel prices, won’t see much.”“The longer it goes on, the more it takes those higher prices of fuel to work their way through the system,” Biss said.“If I’m putting a budget together right now for a family, at this point, other than fuel costs, there’s not a lot of things really at this point to make changes on or reflect in, other than probably good to build up a little more of a savings, a little more of a cushion, because we don’t know how long this will last or where this will go,” Biss said. “It’s always good to have some powder dry, because you never know when some random thing comes out of left field, like, oh, having war in Iran.”Alaska House budget panel advances $3,800 PFD in draft budgetPolice warn Alaskans of new widespread text scam‘There’s never any urgency, until it’s too late’: 3 months missing, what happened to Kelly Hunt?
What Is The Iran Ceasefire Iran Ceasefire Budget Impacts Iran Ceasefire Economy Price Of Gas Iran Ceasefire Fuel Prices Economy Iran War Econony Imact Strait Of Hormuz Strait Of Hormuz Economy Strait Of Hormuz Closer Alaska Impact Alaska Impact Iran War
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