Why Russia-Ukraine conflict is impacting gas prices, stock market at home

BENTON TOWNSHIP, Mich. — With gas prices rising and stocks taking a hit, will President Biden’s sanctions have the intended impact and prevent the conflict overseas from putting more strain on Americans’ daily lives?

“You have to allow enough time for the financial and economic sanctions to take place,” said Tiffany Bohm, Professor of Political Science at Lake Michigan College. 

The conflict between Russia and Ukraine is now being felt at home.

It is bringing instability to the stock market –   

“The market is just responding to international fears,” said Bohm. “There’s a lot of volatility especially with the sanctions and international trade, there’s a lot of money that’s basically going to be frozen because we’ve frozen one of the major banks in Russia.”

And, costs are going up at the pump.  

“Oil prices are going to go up because of fears,” said Bohm. “Russia is the second largest exporter of oil, the U.S. is one of the major consumers of oil so anytime there’s a shortage the immediate reaction is to be fearful you’re not going to have enough.”     

But with sanctions now being placed on Russia by the U.S., what kind of hit will it have for President Putin’s economy –  rather than ours?  

“It’s changed a bit in recent years, but Russia is very independent on the U.S. dollar,” said Bohm. “The ruble has tanked in Russia today, it’s really going to constrain people’s access to money in Russia.”