What happened
The national average price of petrol in the United States has climbed above $4 per gallon, according to AAA data, marking the highest level in more than three years. Prices have risen more than 30% since the US and Israel launched strikes on Iran in late February.
Diesel has been hit harder, reaching $5.45 per gallon — a 45% increase since the start of the conflict. The International Energy Agency has called Iran’s closure of the Strait of Hormuz the largest energy supply disruption since the 1970s oil crisis, removing roughly 10 million barrels per day from global markets.
Why it matters: the price shock is no longer confined to the fuel pump. It is spreading through the US economy into consumer goods, travel, and shipping.
Surcharges and knock-on effects
Amazon this week added a fuel surcharge to delivery fees, citing rising diesel costs. JetBlue introduced a temporary fare increase tied to jet fuel prices. Both companies said the adjustments would remain until energy markets stabilise.
Trucking and logistics firms are passing higher diesel costs to retailers, according to the American Trucking Associations. Economists at the Center for American Progress estimate that tariffs and fuel costs combined could raise average consumer prices by more than 2% in the second quarter of 2026.
What the numbers show
The US Energy Information Administration forecasts retail petrol prices could average 70 cents per gallon higher in the second quarter than before the conflict. Mortgage applications have already fallen 40% year on year, partly due to inflation expectations pushing interest rates higher.
According to a CNN poll released this week, two-thirds of Americans say the administration’s economic policies have worsened conditions. The president’s economic approval rating has fallen to 31%, its lowest point.