Local Experts Warn of Economic Impacts from Escalating Iran Tensions

ODU Economics Chair says prolonged conflict could raise gas prices, slow military spending in Hampton Roads

Published on Mar. 2, 2026

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As tensions between the U.S. and Iran continue to escalate, local experts warn that the economic impacts could soon be felt in the Hampton Roads region. Bob McNab, Chair of the Economics Department at Old Dominion University, says that a prolonged conflict could lead to oil shocks that raise gas prices and the cost of goods across the board. McNab also notes that increased military deployments from the area could slow local economic activity as service members and their families leave the region.

Why it matters

Hampton Roads is home to a large military presence and is closely tied to the defense industry, so any escalation of conflict overseas could have significant economic ripple effects in the region. Rising gas prices and reduced military spending locally could impact businesses and residents throughout the area.

The details

McNab believes there is no immediate reason to panic, as leaders on both sides are exploring diplomatic solutions. However, he warned that the longer the conflict drags on, the more expensive it could get for Hampton Roads and the rest of the U.S. Iran is a major oil producer, and disruptions to its exports through the Strait of Hormuz could lead to global oil shocks that drive up gas prices. Additionally, an extended military deployment from the region could slow local economic activity as service members and their families leave the area.

  • The U.S. and Iran have been escalating tensions in the Middle East over the past several months.
  • On Sunday, President Trump said Iranian leaders 'want to talk' after the death of Ayatollah Ali Khamenei.

The players

Bob McNab

Chair of the Economics Department at Old Dominion University.

Leslie Caughell

13NewsNow Political Analyst.

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What they’re saying

“Don't panic. These things, at the end of the day we saw this with the previous bombing campaign against Iranian nuclear sites, which was off-ramped pretty quickly. We have leaders from the United States and other countries seeing if Iranian leaders are willing to talk.”

— Bob McNab, Chair, Economics Department, Old Dominion University

“The longer this takes to come to a resolution, the more expensive it can get to our pocketbooks in Hampton Roads and across the United States.”

— Bob McNab, Chair, Economics Department, Old Dominion University

What’s next

McNab says the judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This conflict highlights the vulnerability of Hampton Roads' economy to global events, as the region's heavy reliance on the military and defense industries means it could be significantly impacted by prolonged tensions overseas. Local leaders will be closely monitoring the situation to assess potential economic fallout.