Soaring gas prices and disrupted supply chains will ripple out to increase costs in every store and sector of the economy |
The disruptions from the U.S. and Israeli attacks on Iran spread quickly to commercial aircraft, shipping lanes and the world’s energy supply. Those repercussions have already hit fuel costs, including for motorists, truckers and fishermen, and are set to spread even more widely, to packaging, household goods, appliances, medicines and electronics.
I study global supply chains and how they interconnect and depend on each other around the world. There are several ways in which U.S. consumers will begin to feel the pinch of the war. Some of those effects have to do with domestic commerce, and some are a result of the interwoven nature of global trade, where raw materials from one place are shipped somewhere they are manufactured into specific items that are then transported to consumers.
Rising costs in the US
There are three main categories in which costs will begin to rise.
Fuel shortages and freight surcharges: From March 2-16, 2026, the average nationwide price of U.S. regular gasoline rose from US$3.01 to $3.96 per gallon, while diesel fuel rose from $3.89 to $5.37. Diesel prices matter to consumer costs because diesel engines power trucks, farm machines, construction equipment, fishing vessels and many of the vehicles that carry domestic freight. When items become more expensive to harvest, build and ship, diesel costs spread quickly into grocery, household and building material prices.
Chemicals, fertilizer and packaging: QatarEnergy has........