As the Iran war continues to drag on, another unforeseen effect on the economy is likely to hit American budgets very soon.
Tightening oil supplies from the shutdown of the Strait of Hormuz have already raised gas prices, but now industry experts say it is also leading to a shortage of lubricants that are synthesized from specialized base oils.
‘This will impact not only consumers, but also industrial businesses that depend on machinery (which will end up impacting costs and supply throughout the economy).’
Internal communications from Nissan as well as Toyota indicated that service centers are seeing a shortage of motor oil stocks that is leading to increased prices.
“Due to ongoing global supply constraints impacting key raw materials and refining inputs due to the Middle East conflict, we have been advised of reduced production capacity for most lubricant products,” read the bulletin from the Nissan automobile company.
The bulletin outlined an expected drop of 45% for some motor oil supplies.
A spokesperson for the company confirmed the authenticity of the leaked bulletin to the Drive.
“Nissan is closely monitoring current oil supply constraints in coordination with our supplier partners,” read the statement from the spokesperson. “We remain fully committed to supporting our dealers and maintaining a high level of service for our customers.”
The shortage is likely to place more pressure on the Trump administration to reach a ceasefire deal with Iran and reopen the strait to oil tanker deliveries. President Donald Trump has forcefully rejected the latest round of negotiations from the Iranian regime and called its offer “garbage” and “unacceptable.”
Economic expert and Blaze Media contributor Carol Roth told Blaze News the shortage will likely affect the midterm election.
“Motor oil and lubricants are just a couple of the 6,000 derivative products of oil that are being affected by the conflict with Iran,” Roth wrote. “Retailers and auto dealers, among others, are reportedly being told to prepare for historic shortages. This will impact not only consumers, but also industrial businesses that depend on machinery (which will end up impacting costs and supply throughout the economy).”
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“While it seems like individuals haven’t reached the tipping point yet where they will take it out on politicians in the midterms,” she added, “we are getting closer to that point each day.”
On Tuesday the Bureau of Labor Statistics released its monthly report indicating that inflation had spiked to 3.8% in April, which many believe is a direct result of the U.S.-Israel strikes on Iran.
On the same day, the latest CNN/SSRS poll showed that about two-thirds of Americans believe the president’s policies have worsened economic conditions.
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