ORLANDO, Fla. – Financial markets have been swinging sharply in recent days as the conflict in Iran intensifies, in turn creating uncertainty for investors and consumers alike.
One of the most immediate impacts: the cost of a gallon of gas.
Oil prices have jumped roughly 10 percent in just a matter of days, and experts warn that if the conflict drags on or spreads, drivers could see prices climb even higher in the weeks ahead.
Though global tensions can affect much more than fuel costs, market volatility can also shake retirement accounts, investments, and household budgets.
Wednesday morning, we spoke with CBS News Business Analyst Jill Schlesinger, who explained what’s driving the recent swings. Jill also shared practical steps people can take right now to protect their finances and stay focused on long-term goals despite the uncertainty.
Here’s the full transcript of our interview with Jill:
WKMG-TV: With the war in Iran over the past few days, we have seen significant swings in financial markets. So how is a conflict half a world away impacting your wallet? And what should you do to protect yourself? CBS News Business Analyst Jill Schlesinger is here to discuss.
Jill. Let’s start with oil, which has jumped over the past few days here in Central Florida. Gas prices are back above $3. Could we see prices go up some more?
Jill Schlesinger: I think so, of course. So much depends on how long this lasts. You know, just within a couple of days, we saw that again. As you noted, an increase of about $0.10 or $0.12 a gallon. Just remember, more than half of the cost of a gallon of gas is based on the price of oil. Oil has jumped about 10%.
And experts are saying that if this persists and spreads, we might see another 30 or 40 cents per gallon increase. And that would push everyone in the country up. Maybe nationally, we get to about $3.50 a gallon, certainly not nearly as bad as the top that we saw in 2022, when we were around five bucks a gallon, but bad enough to catch your attention.
Again, there’s not so much to do about this. Drive less, of course, but just be prepared that it could get a little bit worse over the next few weeks.
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WKMG-TV: And Jill, what actions should people take right now to prepare for the longer haul?
Jill Schlesinger: You know, when I feel uncertainty or anxiety, I try to kind of focus on what I can control. And I think that’s a pretty good idea because you’re going to feel nervous about various headlines. So, I always pull out my handy-dandy panic protection plan.
It always starts with the big three, and the first thing is making sure that you’ve got 6 to 12 months of living expenses in an emergency reserve fund.
If you’re short on that account, maybe you can try to reduce some of your spending. Maybe you pull back temporarily on some of your retirement or college planning contributions, just try to build that up. That always gives you this great sense of security.
With that in hand, if you’ve got that emergency reserve, maybe pay down outstanding high-interest consumer loans, credit cards, autos, student loans, those things can really be a great way to kind of get yourself feeling like you’re in control. And if you’ve got one and two handled, maybe it’s time to push up your retirement contributions. Of course, to the best of your ability.
WKMG-TV: And lastly, Jill, what about investors? What should they be doing?
Jill Schlesinger: You know, I thought yesterday was a really instructive case. You start the day, and you feel like, oh my gosh, this looks horrible. Markets are down two 3%. They kind of claw back by the end of the day. It shows you that it’s nearly impossible to time the market. So, remember this gang - taking no action, that is an action in and of itself.
Remind yourself you were saving for a long-term goal. It’s probably retirement years, decades in the future. And if you are contributing to a retirement account, sometimes your knee-jerk reaction is that things are scary. I’m going to reduce that. No, no, no! Get that automatic money coming out of your paycheck.
Put it into your retirement savings and say, ‘Hey, I’m so smart. I’m buying shares at a big discount to where we were just a few months ago’. Stick to your game plan.
WKMG-TV: Jill Schlesinger, you are always a great voice of reason. Thank you so much.
You can see Jill regularly on CBS Mornings and the CBS Evening News. And for more analysis, go to JillOnMoney.com.