Fuel price volatility, caused by the stalemate in the war between the United States, Israel, and Iran, is creating uncertainty in the affairs of many descendants of Portuguese people in the United States ahead of midterm elections.
In San Marcos, located 60 kilometers from San Diego in southern California, Portuguese man João da Silva Nunes feels the impact of rising fuel prices and the cost of living in his store specializing in Portuguese and Brazilian goods, 'O Prego.'
The entrepreneur told Lusa that the situation has affected him significantly, mentioning not only the price of gasoline but also the effect of tariffs—15% on goods from Portugal—as well as the closure of distribution and import companies, which complicates the supply to the store. He stressed the need for maximum support to continue operations.
The store, opened six years ago, has regular customers who are now spending less and feeling the rise in prices. João da Silva Nunes explained that fuel always has the greatest impact because the country is heavily dependent on logistics: 'As soon as fuel rises, the price of everything rises.'
He added that although wages are increasing, it is happening slowly, and people do not have extra money for additional purchases.
The Portuguese man also noted that many residents have faced reductions in benefits, including access to subsidized medical services. 'They are paying more, they have less money to spend,' he summarized. Customers often come only for staple goods, except for special holidays such as Easter or Christmas. Where customers used to spend $40 at a time, they now spend $15. 'Unfortunately, life has risen to a certain level that is becoming very difficult for everyone.'
Nunes, who votes for candidates he likes regardless of party, hopes for stabilization and improvement after the midterm elections, awaiting any changes. He stated: 'We need stability to move forward. Right now, we cannot plan anything because everything changes day by day. So I think we need this certainty to move on.'
Kevin Alameda, Vice President of Clipper Oil in San Diego, also noticed the impact of instability caused by the war with Iran on his sector. He described that 'the price of oil has doubled or tripled, which means all bills to be paid have doubled or tripled in cost.' He noted that all their customers are currently in a worse position because they are paying more for fuel than ever before.
Although Clipper Oil has not actually lost customers, there are credit line restrictions, which complicate the business of these companies. 'Previously, we could sell fuel to a cruise liner for $400,000, but now the same bill costs a million dollars due to rising fuel prices,' Alameda explained. Tuna fishing boats are in a particularly difficult situation because the price of fish does not match the rise in oil prices.
He emphasized: 'From our point of view, we prefer cheaper fuel, for which we can sell a larger volume at a lower price, as our customers benefit. We prefer more stable and lower oil prices than a year full of fluctuations, uncertainties, and variables.'
Looking to the future and the post-election period, Portuguese descendants expressed doubts about the resolution of the situation, not seeing how the United States can exit the war with Iran. 'I think everyone is very curious about how the war with Iran will end, when it will end, what the long-term consequences for the Strait of Hormuz will be, who will manage it, and what the final outcome will be,' he concluded. 'We hope it ends as soon as possible. But we really don't know what the future holds for us and what will happen there.'
The sector is in a state of uncertainty regarding how the price of a barrel of oil will develop. Kevin Alameda asked: 'At what point in some industries, such as fishing, will the price of diesel fuel become so unstable that ships cannot operate?' He noted that if customers cannot pay the bills, they cannot pay the company.
Kenny Alameda, founder of Clipper Oil and Clipper Capital Group, expressed optimism. 'But I have some concerns, both economic and political,' he said. 'I would like us to get rid of extremism on both sides, and everyone could get along and try to take a centrist position.'
The midterm elections will take place on November 3rd and will determine control over Congress. The Democratic Party, which opposes President Donald Trump, is favored to gain a majority in the House of Representatives and has a chance to win in the Senate, although the margin is too small for predictions.