Iran War Adds $100 Billion to US Fuel Costs as American Households Face Higher Prices

US consumers have spent an estimated $100 billion more on petrol and diesel over the six months since the US-Israel war on Iran began, according to a tracker from Brown University’s Watson Institute for International and Public Affairs.

The additional spending highlights the economic impact of the conflict on American households, with rising energy prices feeding into transportation and other everyday costs.

Average Household Faces $763 in Extra Fuel Costs

With an estimated 131 million households across the United States, the additional fuel spending works out to approximately $763 per household.

Petrol prices have risen sharply since the conflict began on February 28. According to the data cited by Al Jazeera, the average price of petrol increased by about 39 percent, from roughly $2.98 to $4.15 per gallon.

Diesel prices have climbed even more, increasing by more than 60 percent, from approximately $3.67 to $5.90 per gallon.

California Has the Highest Petrol Prices

Fuel prices vary considerably across the United States. California currently has the highest average petrol price, at about $5.85 per gallon, according to figures from the American Automobile Association.

Washington, Hawaii, Alaska and Oregon also rank among the states with the highest average petrol prices.

At the other end of the scale, Indiana has the lowest average petrol price, at approximately $3.43 per gallon.

Rising Oil Prices Could Push Up Food Costs

The effects of higher fuel prices extend beyond filling stations.

Oil and gas are used throughout the food supply chain, including farming, fertiliser production, refrigeration, packaging and transportation. When fuel becomes more expensive, businesses can face higher costs at multiple stages before products reach consumers.

Those increased costs can ultimately contribute to higher food prices.

The impact could be particularly severe in lower-income countries that depend heavily on imported food, grain and fertiliser and where households spend a larger proportion of their income on food.

US Fuel Costs Remain a Major Economic Concern

The prolonged conflict has added pressure to US consumers at a time when household budgets are already sensitive to changes in energy and food prices.

The war was initially expected by US President Donald Trump to last only several weeks, but it has now entered its sixth month, according to the Al Jazeera report.

As the conflict continues, fuel prices and their wider economic consequences are likely to remain closely watched by consumers, businesses and policymakers.