As Iraq’s government disintegrates amid sectarian violence and the overtaking of major cities by powerful and determined insurgents, American businesses and consumers rightfully wonder how it will affect them over here. Here are the major concerns and the answers that allay some of those fears.

Oil price hikes. That’s usually the first worry, on everyone’s mind when they hear about any instability in the Middle East. It’s true, higher oil prices certainly affect business’ local delivery costs as well as overseas and long-distance shipping. It’s also estimated by many economists that every $10 increase per barrel of oil reduces U.S. economic growth by .5 percent. That kind of sluggish or negative growth can boost interest rates, which directly affects access to cash and credit by small business.

But…most US oil comes from Canada. Many of us presume that we’re dependent on Middle East oil, but that’s far from true. According to the U.S. Energy Information Administration, more than half of our oil comes from North and South America, and 30% comes from Africa and other non-Middle East places like Indonesia and Norway. The remaining 18% or so that does come from the Gulf comes mostly from Saudi Arabia and Kuwait, with Iraq a distant third.

Also, most of Iraq’s oil fields are in the south, away from the main fighting and not in danger of being affected. And while it has been reported that the Sunni insurgents have overtaken their largest refinery, even the small amount of oil that we do get from Iraq is crude, not refined.

Ripple effect of violence. There is always a concern that unchecked violence, particularly of the Islamic terrorist kind, will affect our security and subsequently, our economy. On the large scale this is true, such as people being more reluctant to travel abroad which affects the travel industry, or a business holding back from expanding to overseas markets. But for most businesses, as well as the stock market, events in Iraq will have no impact on their industries. Even with the daily influx of new fighting and gains by the insurgents, the Dow is up over 200 points since the fighting began.

Effect on spending. Similarly, consumers don’t cut back on their spending simply because of a crisis in another part of the world, however impactful it is politically. Children still need school supplies and clothes, adults still buy refrigerators and washing machines, people still buy sporting goods, and so on. It’s true that food prices have risen, particularly meat, pork, and fish, but that has much more to do with the recent drought in California than it does with world oil prices or events in Iraq.

In today’s global economy and 24/7 news cycle, almost every international event can be seen as having a butterfly effect on our U.S. economy, but American businesses remain strong and on the rise, and will continue to strengthen as we move forward.