How the crisis in Ukraine could affect your wallet

INDIANAPOLIS — As tensions continue to escalate in Ukraine, thousands of miles away, it's affecting us here in the United States.

According to gasbuddy.com, the cheapest price for a gallon of regular gasoline in the Indianapolis area is $3.19 a gallon.

The average price across the city at $3.35, according to AAA.

President Biden addressed the rising tensions between Russia and Ukraine Tuesday afternoon.

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Biden said he will take steps to make sure the sanctions currently in effect against Russia don't raise gas and oil prices even more.

However, according to IU Bloomington International Studies Professor Michael De Groot, Russia has such a large energy market that sanctions are bound to be felt here in the U.S.

“The reality is the energy markets are out of the control of anyone's power,” said De Groot. “So, while the government may make policies intended to encourage expanded supply, I think there is a limit to what can be done.”

Along with gas prices rising, the crisis is also hitting our financial markets and impacting retirement savings.

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On Tuesday, The Dow Jones dropped nearly 500 points and The Nasdaq and SP 500 dropped 1 percent.

De Groot says anytime there's a potential military conflict, markets react negatively.

“There is inevitably going to be backlash there is going to be reverberation in the sanctions,” said De Groot. “I think generally we should remember we are unfortunately in the middle of a pandemic, and there is a weak economic recovery.”