The Iran War Is About to Unleash a Inflation Shock the Fed Can’t Stop
As I keep emphasizing, the War in Iran has the potential to ignite another round of inflation in the U.S. In fact, the longer this conflict drags on, the higher the odds of inflation surging.
When most people think about oil and its uses, they think of gasoline and cars. But the reality is that oil prices input to just about everything in the economy. In this contex, higher oil prices can cripple an economy in a step by step fashion.
The first sector to get hit is transportation. Higher oil prices means that every shipping truck, every cargo ship, every airline faces sharply higher operating costs. This is why the Dow Transportation Index collapsed over 10% as soon as the conflict with Iran began.
Manufacturing is the next sector to next hit. Oil and other petrochemicals are embedded in plastics, fertilizers, pharmaceuticals, and industrial lubricants. When crude rises, input costs climb across entire industries in lockstep. Take a look at tool manufacturer Stanley Black and Decker (SWK) and you’ll see what I mean, SWK shares are down over 20% since the conflict began.
Eventually, if oil prices remain elevated for long enough, inflation will spread into the broader economy. As I’ve already outlined, energy prices are the only component of the CPI that is actually declining. Remove that and the disinflationary impulse that has pushed equities higher since late 2023 is gone.
Stocks are beginning to discount this.
Bottomline: the War in Iran has the potential to unleash another inflationary storm. The longer this conflict lasts, the greater the odds.
Investors have a short window of time to prepare for what’s coming. The smart money is already rotating into hard assets and precious metals — the sectors that have historically thrived during inflationary storms.
On that note, our Special Investment Report titled Survive the Inflationary Storm details FIVE precious metals mining plays you can use to potentially make extraordinary gains. These are HIGH OCTANE positions that rose 75%, 140%, 150%, 180%, 280% and an incredible 574% in 2025! And I wouldn’t be surprised to see them repeat this performance in 2026.
Normally I’d charge $499 for this report as a standalone item, but in light of what is unfolding today, we are making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research