Ameriprise warns prolonged oil shock could cut annualized US GDP by 1.5%-2%

Reuters03-17 01:39
Ameriprise warns prolonged oil shock could cut annualized US GDP by 1.5%-2%

Ameriprise said Middle East tensions helped push WTI crude to USD 98.56 per barrel, up 47% since the conflict began. Chief Economist Russell Price said the rise in crude and gasoline prices could reduce real U.S. GDP by about 1.5% to 2% on an annualized basis. The firm said oil shocks have tended to weigh more on consumer sentiment, spending, and inflation when elevated prices persist, while shorter spikes have had more limited spillover into core inflation. Ameriprise said the U.S. economy is less oil-intensive and is an energy exporter, which may reduce the proportional economic hit compared with past decades. It added that markets appear to be pricing a return to more normal conditions within a few months, with attention on when Gulf production normalizes and the Strait of Hormuz reopens.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Ameriprise Financial Inc. published the original content used to generate this news brief on March 16, 2026, and is solely responsible for the information contained therein.

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