Fuel Prices Skyrocket Across US Amid Ongoing Iran Tensions

Higher fuel prices are causing headaches for consumers and businesses across the US. The average cost of a gallon of gas has risen by more than 50% since the Iran war, reaching $4.47 at this writing. This increase is largely due to constraints on global supply resulting from the closure of the Strait of Hormuz, which have driven up the international benchmark price of crude oil to around $100 a barrel.

The impact is being felt most acutely in the transportation sector, where diesel prices have increased by 66% over the past year. At an average $6.51 per gallon, diesel is more expensive than ever before, with some stations charging as much as $9.99 per gallon. The closure of diesel refineries in the Persian Gulf and Russia has contributed to this increase.

The higher cost of fuel is being passed along to retailers and consumers, affecting every product category. According to a tracker run by the Institute for Taxation and Economic Policy, the combination of higher fuel prices and the costs resulting from them will cause an average household expense increase of $1,174, if prices stay where they are.