Americans have spent more than $41 billion in additional fuel costs since the Iran conflict began in late February, as rising oil prices continue to ripple across the U.S. economy and pushing inflation higher.
According to estimates from Brown University’s Watson School of International and Public Affairs, U.S. consumers had spent roughly $41.7 billion in extra gasoline and diesel costs as of Sunday night, or about $318 per household.
The university’s Iran War Energy Cost Tracker, which uses AAA fuel-price data, showed national average gasoline prices climbed from $2.98 per gallon at the start of the conflict to $4.51, a jump of more than 51%. Diesel prices surged nearly 54% to $5.64 per gallon.
“We are spending this huge amount of money as a country on extra fuel costs, which we could have used in a whole bunch of more constructive ways to improve America’s transportation infrastructure,” Jeff Colgan, a political-science professor at Brown University, told the Financial Times.
Fuel Costs Spread Across Industries
The energy shock has extended beyond consumers and into transportation and food markets.
Earlier this month, the Department of Transportation said U.S. airlines spent $5.06 billion on fuel in March alone, up 56.4% from February, as disruptions around the Strait of Hormuz pushed oil prices sharply higher. Fuel costs accounted for some of the steepest operational increases faced by carriers, including American Airlines Group Inc. (NASDAQ:AAL), United Airlines Holdings Inc. (NASDAQ:UAL) and Southwest Airlines Co. (NYSE:LUV).
The impact has also spread into global food markets. The United Nations’ Food and Agriculture Organization recently reported that food prices rose for a third consecutive month in April as higher crude prices and shipping disruptions lifted costs for vegetable oils, cereals and meat products.
Inflation Concerns Continue Rising
The surge in fuel prices has intensified concerns that inflation could remain elevated for longer.
President Donald Trump said earlier this month that Americans’ financial struggles were not influencing negotiations tied to the Iran conflict, stating, “I don’t think about Americans’ financial situation, I don’t think about anybody.”
Economist Peter Schiff recently warned that suspending the federal gas tax to offset higher prices could weaken the dollar and eventually push oil prices even higher.
Meanwhile, Patrick De Haan, head of petroleum analysis at GasBuddy, warned gasoline prices could climb to $5 per gallon if disruptions around the Strait of Hormuz continue.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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