Americans are already feeling the economic impact of the conflict with Iran just two weeks after U.S. and Israeli forces launched attacks. Gasoline prices have surged 17 percent to $3.48 per gallon, the highest level since 2024, while diesel costs have jumped 24 percent to nearly $4.66 per gallon. These increases threaten to ripple through the broader economy as shipping costs rise.

The price spike reflects surging oil costs, with the international benchmark briefly hitting $120 per barrel before settling below $90. If prices stabilize around $95, regular gasoline could reach $3.75-$4 per gallon by next week, according to Moody's Analytics chief economist Mark Zandi. The conflict has disrupted traffic through the Strait of Hormuz, where one-fifth of global oil passes, and forced several regional refineries to shut down or reduce processing.

Beyond fuel, the war threatens food prices as the Persian Gulf supplies much of the world's fertilizer. With spring planting underway, American farmers are bracing for supply disruptions that could lead to crop shortfalls and inflation. Airline tickets are also becoming more expensive as jet fuel costs have risen 58 percent since the conflict began, potentially dampening travel demand this spring and summer.