The Iran war's economic hit could linger through 2026, economists say

MoneyWatch In 8 weeks, the Iran war has dented the U.S. economy. The damage could linger, economists say. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Mary Cunningham Mary Cunningham Reporter, MoneyWatch Mary Cunningham is a reporter for CBS MoneyWatch. She previously worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program. Read Full Bio Mary Cunningham April 24, 2026 / 4:27 PM EDT / CBS News Add CBS News on Google In the eight weeks since the Iran war started, the conflict has driven gas prices above $4 a gallon, strained homebuyers and pushed inflation to its highest level in nearly two years. Even if the war ends soon, Americans are likely to feel the financial sting for months, economists say."I think the damage has already been done, in part because there's no going back on oil prices, at least not any time in the near future," Mark Zandi, chief economist at Moody's Analytics, told CBS News.The war has disrupted traffic through the Strait of Hormuz, a strategic waterway through which one-fifth of the world's oil supply normally flows. Oil prices have jumped as a result, creating widespread consequences for Americans as they fuel their cars and book travel. As of midday Friday, Brent crude, the international benchmark, was trading at $105 a barrel, up 44% since before the war started.Oil production will take a long time to ramp up to prewar levels of 100 million barrels a day because of the widespread damage to energy facilities across the Middle East, Zandi said.While economists forecast that oil prices will dip later this year, they are likely to remain above pre-war levels throughout 2026, according to multiple forecasts. "Our view is that full normalization will still take time, especially when it comes to supply chains, when it comes to energy capacity," said Lydia Boussour, a senior economist at EY-Parthenon, noting the "lingering impacts"...