What war in the Middle East is costing you

Summary

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Podcast Summary: Marketplace Morning Report

Episode: What war in the Middle East is costing you
Date: May 18, 2026
Host: Nancy Marshall Genser

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Overview

This episode of the Marketplace Morning Report delves into the tangible economic impacts of the ongoing war in the Middle East, specifically the recent war in Iran, on American households. With sharp increases in fuel prices and resulting inflationary pressures, the episode explores how global geopolitical tensions are hitting consumer wallets. Later in the episode, there’s an insightful look at the resurgence of Hollywood jobs, thanks to the booming trend of micro-dramas made for mobile devices.

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Key Discussion Points & Insights

1. The Middle East War’s Economic Toll on Americans

Guest: Henry Epp, Marketplace Reporter
Host: Nancy Marshall Genser

• Rising Fuel Costs

  • The war in Iran has led to a dramatic surge in fuel prices.
    • Statistic: U.S. households have borne more than $40 billion in extra fuel costs since the conflict began.
    • Per-Household Impact: Average U.S. household has paid about $318 more in fuel costs since the war’s onset.
      (02:01) "Brown's research finds that so far the war has cost each US household about $318." – Henry Epp

• Inflation Ripple Effect

  • Diesel prices, key for transporting goods, have risen significantly.
  • Resulting higher transport costs have filtered through to food and consumer goods prices as well.
  • Gas Price Jump: Average gallon price rose from $2.98 (pre-war) to $4.51.
    (02:07) "Gas and diesel prices have risen over 50% since the war started in late February. The average gallon of gas is now $4.51." – Henry Epp

• Outlook: Slow Relief Expected

  • Even if the conflict ends soon and the Strait of Hormuz—key for oil shipments—reopens, prices may stay elevated.
  • IEA Assessment: Oil market remains undersupplied; it could be October before supplies recover and prices normalize.
    • Quote: (02:47) "The International Energy Agency said last week that if the conflict ended in early June…the global oil market would remain undersupplied for months." – Henry Epp

• U.S. Government’s Priorities

  • Negotiations for peace are progressing slowly, and national security is being prioritized over economic concerns.
  • Notable White House comment presented:
    • Quote: (03:10) "I don't think about Americans financial situation when seeking a deal with Iran. My only concern is keeping Iran from getting a nuclear weapon." – President Trump, cited by Henry Epp

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2. Hollywood’s Comeback: Microdramas for Mobile

Reporter: Colin Friesen

• Industry Background

  • Hollywood suffered major setbacks due to COVID-19 and two significant strikes, leading to sharp reductions in production and job opportunities.
  • The rise of "verticals" or microdramas—ultra-short, mobile-exclusive scripted shows—has brought new life to the industry.
    • Format: 3-min episodes, designed exclusively for mobile consumption; originated in Asia.

• How Verticals Are Made

  • Rapid, low-budget productions; small crews using phones and multiple cameras.
  • Fast-paced shoots: Directors like Aiko Lazar complete 13-18 pages a day—about four times faster than traditional TV.
    • Quote: (07:21) "13. And then yesterday was 18 and a half, I believe." – Director Aiko Lazar

• Economic Impact

  • Industry insiders credit verticals with saving countless jobs and sustaining film/TV workers through hard times.
    • Quote: (06:42) "If it hadn't been for verticals, the whole industry would have cleared out in a much more dramatic way." – Austin Herring, CEO, Snowy Productions
  • Serial "microdramas" have a strong monetization model—free sample episodes, then full series costing up to $50.
    • Estimated North American microdrama market now exceeds $1 billion.

• Breakout Stars & Mainstream Adoption

  • Casey Esser, dubbed the "vertical Brad Pitt," exemplifies new career opportunities, earning ~$2,000/day.
    • Quote: (08:02) "I mean, I don't think I would reject that association." – Casey Esser, on being called the vertical Brad Pitt
  • Big players such as Disney and Kevin Hart are moving into the space, hinting at wider mainstream expansion.

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Notable Quotes & Memorable Moments

• On the direct impact of the war:
  "Brown's research finds that so far the war has cost each US household about $318."
  — Henry Epp, [02:01]

• On fuel price surges:
  "Gas and diesel prices have risen over 50% since the war started in late February. The average gallon of gas is now $4.51."
  — Henry Epp, [02:07]

• On future relief:
  "The International Energy Agency said...if the conflict ended in early June...the global oil market would remain undersupplied for months. Could take until October for oil supplies to catch up." — Henry Epp, [02:47]

• On the entertainment industry’s turnaround:
  "If it hadn't been for verticals, the whole industry would have cleared out in a much more dramatic way."
  — Austin Herring, [06:42]

• On the rapid pace of filming:
  "13. And then yesterday was 18 and a half, I believe." — Aiko Lazar, [07:21]

• On new celebrity culture:
  "It definitely doesn't offend me. I mean, I don't think I would reject that association." — Casey Esser, [08:02], responding to being called the "vertical Brad Pitt"

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Timestamps for Important Segments

• 01:31: Start of main segment: The cost of the Iran war for Americans
• 01:57: Breakdown of household and total cost data
• 02:44: Outlook for fuel prices and oil market recovery timeline
• 03:10: President Trump’s statement on policy priorities
• 05:41: Shift to Hollywood: Recovery via microdramas
• 06:12 – 08:52: Industry interviews: Vertical format, production stories, economic impact, new stars

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Tone & Style

The discussion is brisk, factual, and focused, matching the Marketplace signature style. Economic analysis is delivered in clear, straightforward language, while the Hollywood segment mixes levity with practical industry insights.

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Summary prepared for listeners seeking a concise but comprehensive understanding of the episode’s major stories and takeaways.

Transcript

[Colin Friesen]

This Marketplace podcast is supported by the Freedom From Religion Foundation. America is an aspirational idea, one we're still working to fulfill, shaped by enlightenment ideals, reason, liberty and freedom of conscience, the belief that power comes from we the people, not a divinely appointed ruler. And while these ideals have not yet been fully perfected, they created something powerful, a framework that has expanded rights and freedoms over time. Now those freedoms and your rights are under attack. We're seeing growing efforts to blur the line between church and state, public funds to promote religion, Ten Commandments and cloth classrooms, and pushing a version of America that leaves out too many people. As our Nation approaches its 250th anniversary, the Freedom From Religion foundation is working to protect the Constitution, defend secular government, and ensure that freedom continues to expand for everyone. Because America isn't just where we started, it's what we choose next. Go to FFRF US America or text America to 51151 1America to 511511 text fees may apply.

[Bridget]

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[Nancy Marshall Genser]

What the war in the Middle east is costing you From Marketplace, I'm Nancy Marshall Genser in Washington. The war in Iran has cost Americans more than $40 billion in extra fuel costs. That's according to an analysis from Brown University's Watson School of International and Public Affairs. The costs go beyond just what Americans pay at the pump. Marketplace's Henry Epp is here with more. Good morning, Henry.

[Henry Epp]

Hey, Nancy. So Brown's research finds that so far the war has cost each US household about $318, because, as we've seen when we go to the gas station, gas and diesel prices has risen over 50% since the war started in late February. The average gallon of gas is now 451 a gallon. It was 298 when the war started. And that $40 billion figure that Brown is counting is just the direct cost of fuel, but also gets passed along to us in other ways. Diesel, especially, is essential for transporting goods. So higher diesel prices are also pushing up prices of food and other consumer products.

[Nancy Marshall Genser]

So, Henry, could these prices come down if the war in the Middle east is resolved and the Strait of Hormuz is reopened potentially.

[Henry Epp]

But even if the strait reopens soon, fuel prices likely won't immediately drop. The International Energy Agency said last week that if the conflict ended in early June, just a couple weeks away, the global, global oil market would remain undersupplied for months. The agency said it could take until October for oil supplies to catch up with demand, and that could keep fuel prices high. And countries have been drawing down their stockpiles of oil to get through this period and those reserves are getting thin. And meanwhile, there hasn't been much public progress in negotiations in recent weeks. And President Trump said to reporters last week, quote, I don't think about Americans financial situation when seeking a deal with Iran. And he added that his only concern is keeping Iran from getting a nuclear weapon. But the financial costs from this war for Americans are clearly adding up.

[Nancy Marshall Genser]

Yes, they are. Well, thank you very much, Henry.

[Henry Epp]

You're welcome.

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[Three Day Blinds Announcer]

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[Nancy Marshall Genser]

It's been a rough few years in Hollywood, Covid. Then two big strikes saw networks and studios cut way back on production. But as Colin Friesen tells us, some of these jobs are finally coming back, thanks to an explosion of micro dramas made just for your phone.

[Colin Friesen]

On the patio of a hip Hollywood coffee shop, directors Corey Gibbons and Kristen Brancaccio are comparing resumes.

My first one was Billionaires Borrowed.

[Henry Epp]

We did that one together.

[Colin Friesen]

The Reluctant Billionaire Mafia Daddy. Surprise. Sextuplets.

These aren't traditional films or TV shows, but a thing called verticals. First popularized in Asia, the quirky titles are often iffy translations from the original Mandarin episodes are three minutes max. Unapologetically soapy cliffhangers designed to be watched on your phone and some say the only thing saving the entertainment business.

The overall tenor of the industry just

[Henry Epp]

was so bleak and everything kind of just went away.

[Colin Friesen]

And then once verticals came along, it was like, oh, I'm busy and so is everyone I know.

Austin Herring is also riding the vertical wave. The CEO of Snowy Productions produces five series a month in the vertical format, or roughly the equivalent of five feature films. There were like tumbleweeds rolling through Hollywood. If it hadn't been for verticals, the whole industry would have cleared out in a much more dramatic way. To keep costs super low, crews are small, they shoot with multiple cameras or on iPhones, and they move fast.

[Bridget]

26 beta, take 1.

[Colin Friesen]

Mark. Action.

In this large house in LA's Koreatown neighborhood, Director Aiko Lazar is trying to get her final shots before lunch. How many pages are you going to do today?

13. And then yesterday was 18 and a half, I believe.

Yeah, so four times the speed of a normal TV show. Producer Peter Sullivan is with Vert TV. Somebody referred to it as cognitive dopamine,

[Ryan]

so that you're constantly having to engage

[Colin Friesen]

the viewer and getting them to want to view more. Most verticals give away the first few episodes. Then once you're hooked, finishing a series can cost as much as $50. It adds up. Current estimates put the value of the microdrama market in North America at more than a billion dollars. The genre even has its first breakout star in Casey Esser, who some call the vertical Brad Pitt.

It definitely doesn't offend me. I mean, I don't think I would reject that association.

Esser had actually just been dropped by his agent when he auditioned for Faded to My Forbidden Alpha, a werewolf love story. Now, with 50 plus series under his belt, he makes around $2,000 a day and plans to start producing with girlfriend slash actress Vanessa Von Schwartz.

No one predicted the introduction of these, but now the goal is to always have a foothold in vert in Hollywood forever, don't we? We can make anything happen, true, but

so can a lot of people. Studios like Disney and actors like Kevin Hart are planning their own phone sized productions, which for fans of supernatural billionaires dating the twin sister of the mother of their secret love child will be at best a mixed blessing in Hollywood. I'm Colin Friesen for Marketplace.

[Nancy Marshall Genser]

Our free daily Wrap newsletter brings all the day's news and numbers straight to your inbox every weekday evening. It'll take you less than five min to catch up. Read the latest issue and sign up for the Marketplace daily [e-mail] subscribe In Washington, I'm Nancy Marshall Genser with the Marketplace Morning Report. From apm, American Public Media.

[Ryan]

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