BofA breaks down economic risks for the U.S. from the Iran conflict in World Economy News 09/03/2026 The conflict involving Iran is unlikely to significantly derail the U.S. economy in the near term, though several channels could amplify the impact if energy prices rise sharply, according to analysts at Bank of America. Aditya Bhave of BofA told investors in a note that historical precedent suggests the economic fallout may remain limited. However, the bank warned that risks could intensify if oil prices experience a prolonged surge. “History suggests the Iran conflict is likely to have little impact on the US economy. But what are the risks?” Bhave wrote in a research note. According to BofA, the biggest threat would come from a “large and persistent energy price shock,” which could ripple through consumer spending and investment. The analyst said such a shock could be amplified through “weaker higher-income spending due to an equity selloff, weaker lower-income spending due to rising delinquencies, and AI capex bottlenecks.” Higher oil prices could also influence monetary policy. BofA believes that in the short term, rising energy costs are likely to keep the Federal Reserve cautious. “In the near term, higher oil prices should keep the Fed firmly on hold,” Bhave wrote. At the same time, the outlook could shift if energy costs begin to weigh more heavily on demand. BofA added that “if energy prices start to weigh on final demand, the Fed would likely turn more dovish in the medium term.” Beyond geopolitics, the bank noted that upcoming inflation data will be closely watched by markets. BofA expects February consumer prices to rise modestly, with headline and core Consumer Price Index inflation projected to increase 0.3% month over month. Source: Investing.com 2026-03-09 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share