Economics in the News – March 2-8, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o President Donald Trump’s war with Iran could have severe economic consequences, according to economists and world leaders. It is a conflict that has left world leaders scrambling to prepare for the economic fallout. The cost for oil rose above $100 per barrel, and if the war lingers – despite Trump’s insistence that it will be short- high energy prices will take their toll globally.
In the United States, average gas prices are nearing $3.50 per gallon and have spiked 16 percent in a week, according to AAA. The war’s impact on shipping throughout the Persian Gulf has created a shortage, driving inflation. Economists warn that inflation could rise by two percent more than it would have otherwise and that if the war persists, it will slow global growth. [The New York Times]
o If the conflict in the Middle East persists, many of the world’s most vulnerable food-scarce countries could suffer. While the Persian Gulf is known for its oil and gas, it’s also a major supplier of fertilizer, especially nitrogen fertilizers, which are used to nourish the crops that provide roughly half of the world’s food supply. Collectively, Iran, Saudi Arabia, Qatar, the UAE, and Bahrain produce nearly 20 percent of phosphate fertilizers.
The shutdown of the Strait of Hormuz has drastically reduced the supply of the nitrogen fertilizers that farmers rely on. The fear is that farmers will reduce crop production because they will be forced to limit their application. When Russia invaded Ukraine, because both countries are major grain exporters, bread shortages became prevalent in West Africa and South Asia. Some believe it is a warning sign of the reliance on fertilizer from a select handful of producers. [The New York Times]
o For years, delivery companies have made it especially convenient for customers to have something delivered quickly – even the same day. However, that’s changing. E-commerce is moving away from the quick, same-day deliveries as shipping costs have increased substantially.
In addition, making customers wait for their orders reduces the likelihood of returns. A 2024 McKinsey survey found that among 1,000 respondents, the delivery speed of a product ranked as fifth in importance. That is a change from a previous survey, which ranked delivery time as the most important factor. For companies such as UPS and FedEx, delaying delivery can give parcel carriers greater flexibility to wait until their trucks are full, thereby lowering the per-package cost. Gen Z shoppers also tend to be more patient than older generations when it comes to delivery speed because of the lower costs and the reduced environmental impact. [The Wall Street Journal]
o More middle-class homebuyers are using programs to help them purchase their first home as housing affordability becomes more difficult. In some cases, people making more than $200,000 per year are eligible for assistance. More than 115 programs have raised their income qualifications since 2023, according to data from Down Payment Resource.
Housing costs have more than doubled what wages have since 2017, with the average home costing more than $400,000. Experts warn that providing people with greater assistance for a down payment isn’t the answer to the housing issue. Mortgage payments remain too high and still need to be paid. They also believe more competition for houses is needed. [The Washington Post]
o Swig – a Utah-based chain that specializes in “dirty soda,” or soda that is mixed with flavored syrup, juice, or cream – is rapidly expanding across the United States. Founded in 2010, the company has nearly 150 locations, many of which opened in 2025. With most of the locations based in the Mountain West and Texas, Swig now has its sights set on expanding to 1,000 locations by 2030.
Swig has relied on social media and reality TV to fuel its growth with the likes of WNBA stars Caitlin Clark and Lexie Hall, as well as other online influencers promoting the brand on social media channels. Another way Swig has capitalized is that the community it’s in is home to the Church of Latter Day Saints, which prohibits the consumption of alcohol, as well as coffee and tea. Sodas are an alternative that is not prohibited by the church that young Mormons are flocking to. [Bloomberg]
