Markets brace for all-out war in Iran as former NATO commander warns Suez Canal could be next

Retired Adm. James Stavridis told CNN on Sunday that Trump now has three options, and "and none of them are good."

Retired Adm. James Stavridis told CNN that the US now has three options regarding Iran, and none of them are good. Futures tied to the Dow Jones industrial average fell 61 points, or 0.12%, while S&P 500 futures were down just 0.05%. West Texas Intermediate futures rose 2.75% to $84.76 a barrel, and Brent crude climbed 3.2% to $90.92. The price of oil has been steadily increasing due to tensions in the Middle East.

A war in Iran could block the Suez Canal, sending oil prices soaring and affecting gas bills. For every $10 increase in the price of a barrel of oil, the average household's gas bill increases by $10-15 per month. This increase would be felt by millions of people who rely on gasoline for their daily commutes. As a result, households would need to budget more for transportation costs.

The current tensions between the US and Iran are part of a long-standing conflict that dates back to the 1979 Iranian Revolution. The US has imposed economic sanctions on Iran, which has led to a significant decline in Iran's oil exports. Insiders know that Iran's strategic location near the Strait of Hormuz, a critical oil shipping route, makes it a key player in the global oil market. The US and its allies have been trying to contain Iran's influence in the region.

The US is expected to announce new sanctions on Iran in the coming weeks, which could further escalate tensions. The Organization of the Petroleum Exporting Countries (OPEC) will meet on March 5 to discuss oil production levels, which could impact global oil prices. Surprisingly, some analysts believe that a war in Iran could actually lead to a decrease in oil prices in the long term, as it could lead to increased investment in alternative energy sources and reduced dependence on Middle Eastern oil.