U.S. Treasury Secretary Timothy Geithner has warned against the adverse consequences of tensions with Iran and high oil prices, saying they pose “the biggest threats” to U.S. economy, Press TV reported citing Reuters.“You have, obviously, the fear of Iran and oil prices, even though that is not hurting the economy today, people can still feel that in their pocketbook today,” he said.
Geithner also identified the fallout from the European debt crisis as another risk factor for the reeling U.S. economy, noting “Europe is still facing a very difficult, very challenging period. They are likely to have weak growth.”
Oil prices have shot up in recent months in the wake of Iran’s decision to halt its crude sales to certain European countries in response to the European Union (EU) oil embargo on Tehran.
The rise in crude prices has slowed down the U.S. recovery from its worst economic downturn in decades. Rising gas prices in the U.S. are one of the biggest worries that could derail the U.S. economic recovery.