US consumers express dismay over rising gas prices after attack on Iran | US-Israel war on Iran News
Energy Prices Surge Amid U.S.-Israel Conflict with Iran
Skyrocketing energy prices resulting from the ongoing U.S.-Israel conflict with Iran are poised to impact the U.S. economy, further straining consumers grappling with rising living costs.
Since the onset of hostilities on February 28, the price of crude oil has surged from approximately $67 per barrel to nearly $97 as of Monday. The conflict has disrupted production and transportation in one of the world’s most resource-rich regions, with oil prices briefly surpassing $100 per barrel on Sunday before slightly retreating.
GasBuddy reported an increase in the average price of gasoline in the U.S. of 51 cents per gallon over the past week. Alma Newell, 52, expressed her concerns at a gas station in Goleta, California, stating that she is worried about how rising costs could further strain her limited budget, particularly as she is currently unemployed due to a shoulder injury.
“The prices have a big impact because I’m not working right now,” she said. “Food and rent are already very expensive.”
The rising fuel prices could deepen public frustration with the administration of President Donald Trump, especially as the midterm elections approach. Gregory Brew, a senior analyst for the Eurasia Group, predicted that gasoline prices could reach between $3.50 and $4 per gallon within a week and diesel prices may rise to $5 this week.
Historically, the highest average recorded for gas prices was $5.034 in June 2022, following Russia’s invasion of Ukraine, as tracked by GasBuddy, which has monitored fuel prices since 2008.
A recent Pew Research Center poll indicated significant public anxiety over the rising cost of living, with 68% of respondents expressing concerns specifically about gasoline prices prior to the recent military actions.
“I’m not too worried myself because I have a hybrid car and ride my bike,” remarked 72-year-old Bjorn Birmir at the same gas station. “But for people in general, it will make life more expensive. Prices are already high, and it will make them even higher.”
The conflict has also caused disruptions in global oil transit, particularly through the Strait of Hormuz, a crucial channel through which about 20% of the world’s oil passes. Iranian threats to close the strait during escalating tensions have significantly hindered shipments and resulted in decreased production from other regional countries.
In addition to energy prices, the war is expected to impact other economic sectors. Fertilizer prices, essential for agricultural production, are rising just ahead of the spring planting season in the Northern Hemisphere, as one-third of the global fertilizer supply passes through the Strait of Hormuz.
The ramifications of the conflict are felt worldwide, particularly in poorer nations. Pakistan announced austerity measures and fuel subsidy cuts on Monday, while Bangladesh closed universities and imposed fuel usage restrictions in response to increasing shortages.
U.S. officials and other nations are contemplating measures to mitigate the impact of rising energy prices, including the release of strategic oil reserves to boost supply. The G7 has stated it will take necessary actions to support energy supplies but has delayed announcing the release of reserves pending further discussions.
The U.S. holds a strategic oil reserve of over 415 million barrels, one of the largest globally. However, it remains unclear when these measures will be implemented and how effective they would be in addressing the disruptions caused by the conflict.
Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security, noted that the overall economic impact hinges on whether the conflict resolves quickly or drags on for weeks or months.
Initial polling suggests that the war has limited public support in the U.S., with a Quinnipiac University poll revealing that 53% of respondents oppose Trump’s military actions in Iran, including 60% of independent voters.
This lack of support could pose challenges for Trump and the Republican Party, especially if the public associates the war with rising prices. Trump has downplayed the potential effects of the conflict on living costs, asserting, “Short-term oil prices… is a very small price to pay for USA, and World, Safety and Peace.”
