MILWAUKEE (CBS 58) -- The war in Iran is now hitting home, with oil prices surging and stocks sliding. Experts say even small disruptions overseas can quickly drive up costs here.
Oil prices jumped more than $10 a barrel over the weekend after Iran made threats to shipping in the Strait of Hormuz. It's a small body of water that is critical to transporting oil around the globe.
“The balance of supply and demand is upset. Even in a minor way, it can have major ripple effects across the globe,” said Patrick De Haan, a petroleum expert with GasBuddy.
Whether it’s at the gas pump or at the stock market, consistency is key.
“Any kind of uncertainty rattles the markets,” said Margaret Hughes-Morgan, a professor at Marquette University and stock market expert.
Following the United States and Israel’s attacks on Iran, experts believe higher gas prices at the pump will be likely in the coming days.
“And the ripple effect has been dramatic on the price of oil, which jumped by over $10 a barrel over the weekend,” said De Haan.
It’s because Iran produces about three to four million barrels of oil in a day and exports up to two million. It's oil that’s transported through the Strait of Hormuz.
“Iran has basically said that if anyone tries to navigate that waterway, they’re going to be attacked,” said Hughes-Morgan.
It's not just gas prices being impacted -- stocks are on the downward trend.
"Essentially, everything – you need energy to run any type of organization, for example, Amazon was down 3% today, because their data centers are gonna be impacted,” said Hughes-Morgan.
Despite the market’s volatility, experts say since WWII, there are more protections in place when it comes to stocks and energy, including massive oil reserves.
“Historically, geopolitical events like this have not had a long-term impact on the stock market,” said Hughes-Morgan.
People should expect higher gas prices for now, but experts believe that spike will be short-lived. As for gold and silver, those items are considered stores of value and typically always go up in value in times like this.
Experts say don’t make any rash decisions, and hold onto any stocks you may have – it’s likely they’ll start to rise again.
“Emotion has no place in the market,” said Hughes-Morgan.