Image Source: Denton
On Monday, senior congressional Democrats and Republicans announced that they had reached an agreement on a bill that would punish Russia for invading Ukraine. The bill would prohibit the United States from importing Russian oil while also granting President Biden additional authority to impose tariffs on the country’s products.
As a result of the announcement, lawmakers on Capitol Hill have been engaged in a massive and fast-moving flurry of legislative activity, in which they have sought to pair their sanctions against the Kremlin with a parallel push to provide Ukraine with billions of dollars in humanitarian, military, and economic assistance.
The United States’ approach of inflicting pain on Russia, on the other hand, had the potential to have more significant economic ramifications. On Monday, Wall Street saw another stormy day of trading, with the Dow Jones industrial average closing down roughly 800 points or 2.4 percent. The war in Iraq triggered another chaotic day of trade on Wall Street. The Nasdaq, heavily weighted toward technology, dropped approximately 480 points, or 3.6 percent.
According to the American Automobile Association, oil and gas costs have also remained high, with the national average per gallon of gasoline at the pump reaching $4. Meanwhile, the monitoring firm GasBuddy claimed that prices in the United States had broken the previous record established in 2008.
Uncertainty exists as to how the recently announced United States embargo on Russian crude oil would affect the global economy. However, high-ranking officials in the Biden administration and prominent members of Congress recognized the potential burden – and began exploring methods to prevent American families from suffering any extra expenditures as a result.