US Consumers Shell Out $100 Billion Extra on Fuel Amid Prolonged War on Iran

According to a tracker from Brown University’s Watson Institute for International and Public Affairs, US consumers have forked out an additional $100bn for petrol and diesel during the six months since the US-Israel war on Iran commenced on February 28. This added burden amounts to roughly $763 per household across the country, calculated using an estimated 131 million households nationwide.

The war on Iran remains deeply unpopular in the United States, with a majority of Americans pointing the finger at President Donald Trump for the surge in fuel prices. In an interview with Reuters news agency, President Donald Trump brushed off concerns regarding the climbing fuel costs, stating, "If they rise, they rise." Instead, President Donald Trump attempted to deflect blame by accusing oil companies of “price gouging”. Although President Donald Trump initially claimed the conflict would last four to five weeks, it has now dragged into its sixth month with no diplomatic breakthrough in sight.

Petrol accounts for the lion's share of the financial burden because Americans consume far more of it compared to diesel. Petrol prices have climbed 39 percent, moving from roughly $2.98 to $4.15 a gallon ($0.79 to $1.09 per litre). Meanwhile, diesel prices have experienced an even steeper hike, surging more than 60 percent from $3.67 to $5.90 per gallon ($0.97 to $1.56 per litre).

Fuel prices vary significantly from state to state, with the highest costs concentrated on the West Coast. California leads the nation with an average petrol price of $5.85 per gallon ($1.55 per litre), driven by preexisting high fuel taxes and carbon pricing programmes, according to the American Automobile Association. California is followed by Washington state ($5.51), Hawaii ($5.39), Alaska ($5.03), and Oregon ($5.01). On the other end of the spectrum, Indiana records the lowest petrol price in the country at an average of $3.43 per gallon ($0.91 per litre).

Higher fuel costs also drive up grocery expenses, as oil and gas influence nearly every phase of the food chain—from tractor fuel and fertiliser on farms to refrigeration, insulation in cold storage, plastic packaging, and truck fuel for transport. These accumulating expenses at each stage of production, storage, packaging, and delivery ultimately translate into higher prices for consumers at supermarket shelves. Furthermore, in lower-income countries where populations dedicate a much larger portion of their earnings to food and rely on large imports of grain and fertiliser, surging oil prices threaten to rapidly trigger food shortages.