That's what the latest report from HSBC claims. Clearly the impact of high oil prices will be damaging, especially in the US. With the recovery still very fragile, high gas prices will pinch consumers not to mention drive up shipping expenses. While much of this issue is beyond Obama's control, Bernanke's easy money (quantitative easing) policy is not helping. That program is keeping the dollar weak against other currencies and that translates into high oil prices. CNBC:
Rising oil prices have displaced Greece as a source of investor anxiety, a new HSBC report says, warning that if the trend of rising oil prices persists, a fragile economic recovery in the developed world could quickly be derailed, and inflation could return to emerging markets. Oil prices have risen to all-time highs in euro and sterling terms in recent days and are edging close to the $147 per barrel high seen in 2008, mainly as a result of rising tensions over Iran. HSBC Chief Economist Stephen King said in the report that sanctions against Iran have already led to supply shortages which have doubtless lifted oil prices.