For U.S. consumers, soaring oil prices
don't just mean pain at the pump — the impact is also likely to be felt by shoppers both in stores and online.
asserted
impact → soar → stores
Global oil prices have
since the conflict effectively closed the Strait of Hormuz, a critical waterway in the Persian Gulf that normally of the world's oil and natural gas supply.
asserted
that → close → supply
That surge is affecting every link in the U.S. supply chain.
asserted
surge → affect → chain
From cargo ships crossing the ocean to the delivery van pulling up to your door, rising fuel and other energy prices are driving up the cost of transporting goods.
asserted
ships → cross → goods
Diane Swonk, chief economist at KPMG, told CBS News that "all of those shifts are adding to costs, a portion of which will be passed along to consumers.
asserted
portion → tell → consumers
"
"The costs that are not passed along show up as a squeeze in profit margins and employment," she added.
asserted
she → pass → margins
A barrel of Brent crude, the international standard, on Friday cost $108.84 after selling for around $70 just before the U.S and Israel attacked Iran on February 28.
asserted
U.S → cost → February
As of March 20, the average U.S. gas price had jumped to $3.92 per gallon, up 29 cents from a week ago and nearly $1 a gallon from February 20, according to AAA.
uncertain
price → jump → AAA
"Headline inflation... will rise sharply in March and April, mostly due to gasoline prices, and inflation will remain stronger as the disruption pushes up food prices and other items," Bernard Yaros, lead U.S. economist at Oxford Economics, said in a report on Friday.
asserted
Yaros → rise → Friday
Stew Leonard, owner of an East Coast grocery chain with annual sales of more than $500 million, expressed concern about the impact of higher energy prices on the company's suppliers, while noting that it is holding off on hiking prices for now.
asserted
it → express → prices
"Stew Leonard's has not felt the impact of rising oil prices, but our farmers, ranchers and fishermen are knocking on the door right now with fuel surcharges.
asserted
farmers → feel → surcharges
We're caught between a rock and a hard place.
asserted
We → catch → rock
Customers are already feeling the pain of food, energy and insurance bills in their personal lives, and I'm going to resist raising prices until the cows come home.
asserted
cows → feel → prices
Not every retailer will feel the pinch equally.
asserted
retailer → feel → pinch
Logistics expert Satish Jindel of ShipMatrix said retailers with lower-value items will be the hardest hit by increased shipping costs.
asserted
retailers → say → costs
"They don't have enough in margins — they'll need to raise prices."
asserted
they → have → prices
Jindel said, pointing to retailers including Dollar Tree, Family Dollar, Marshalls and TJ Maxx among those likely feeling the impact of elevated energy costs.
asserted
Jindel → say → costs
Fuel surcharges
For online shoppers, the impact of sharply higher oil costs may show up not just in the price of some products, but also in shipping and delivery costs.
uncertain
impact → show → costs
"Most people ordering online, they expect normal delivery for free — the moment you ask them even for five dollars, they will abandon the cart," Jindel said.
asserted
Jindel → order → cart
Instead, he expects many stores to raise the purchase minimums required to qualify for free shipping.
asserted
stores → expect → shipping
Fuel costs for shipping are already climbing.
asserted
costs → climb → shipping
According to data from ShipMatrix, fuel surcharges as a portion of shipping fees have climbed 17% in three weeks.
uncertain
surcharges → accord → weeks
"The biggest problem that shipping has is when the ships are working, they're out of sight and mind," G. Allen Brooks, a senior fellow at the National Center for Energy Analytics, told CBS News.
asserted
Brooks → have → News
Consumers will "see the price increases, and they won't fully understand why."
asserted
they → see → increases
The Aporia
