Alaska's Treasury Booms as Oil Prices Soar Amid Ongoing Iran War

The price of North Slope crude oil has topped $100 per barrel for the first time since June, according to figures published by the Alaska Department of Revenue.

This increase is due in part to the ongoing Iran war and its impact on global oil prices. The high cost of crude oil is causing financial benefits for the state of Alaska, including an estimated $7 billion in general-purpose revenue during Fiscal Year 2026.

The preliminary figures show that this amount is more than $500 million above a prediction from March and over $1 billion higher than last fall's forecast. The increased revenue will be used to fund services and Permanent Fund dividends, with an additional $128 million allocated for the latter, raising the payment to $1,200 per recipient.

The state is also expected to earn more in Fiscal Year 2027 due to higher oil prices, which have averaged $84 per barrel so far. This could result in tens of millions of dollars extra for state lawmakers and Alaska's new governor to budget when the 35th Alaska State Legislature convenes in January.