As tensions in the Middle East continue to escalate, the effects are no longer confined to the conflict zone, they are beginning to show up in daily routine across economies. In the United States, rising fuel costs triggered by the war against Iran are now filtering into everyday life, quietly reshaping how businesses operate and how much consumers pay. What began as a geopolitical flashpoint is steadily turning into an economic pressure point, with transportation costs climbing and companies adjusting their pricing to keep up. Petrol prices have climbed significantly, reaching $4.09 per gallon on Friday, an increase of more than one dollar compared to levels seen before the conflict began, and the highest since August 2022. Diesel has seen an even steeper rise, jumping from $3.64 per gallon a year ago to $5.53 per gallon, according to figures from the American Automobile Association (AAA). The surge is particularly significant given diesel’s widespread use in sectors such as farming, construction and transportation, PTI reported. In response to these mounting costs, companies have begun passing on the burden. Amazon announced it will impose a 3.5% fuel surcharge on third-party sellers from April 17. Airlines, too, have started increasing fees for checked-in baggage to offset fuel-related expenses. The US Postal Service is also seeking to introduce a temporary surcharge. It said on Wednesday that it plans to apply an 8% fuel fee on package and express mail deliveries. The proposal, if approved by the Postal Regulatory Commission, would come into effect on April 26 and remain until January 17, 2027. The broader economic impact could deepen if the conflict persists, with supply chain pressures expected to build over time. “I don’t think the US will avoid it. These are global markets,” Rachel Ziemba, a New York-based analyst who advises corporations on geopolitical risk, was quoted by The Washington Post as saying. “Experts, even a week ago, were worried. Now they are more worried,” she said. Economists have also warned of a wider knock-on effect on prices. “If transportation costs start rising, it’s going to bleed through in other prices,” Austan Goolsbee, president of the Federal Reserve Bank of Chicago, was quoted as saying by CBS. “So I think it’s in the near term, but not immediate, that you would start to see that weighing down of the consumer — they would just get sticker shock. People were already highly concerned about affordability and the cost of living, and this would just be piling onto it,” he said. At the centre of the disruption is the blockage of the Hormuz Strait, which has already removed hundreds of millions of barrels of oil from global supply, according to a JPMorgan client note cited by The Washington Post. The impact is being felt in phases, depending on shipping times from the Persian Gulf. Asian countries have been the first to face the shortfall, with governments introducing rationing and conservation steps. Europe is expected to encounter physical shortages by mid-April as the last shipments dispatched before the war arrive at its ports. The United States is likely to experience the effects later due to longer transit times of 35 to 45 days. While higher prices are expected nationwide, shortages of refined fuel products from late April or May are likely to remain limited to California, which is geographically isolated from the country’s broader fuel distribution network, the JPMorgan report said.
