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Iran Conflict Drives U.S. Fuel Bills Through the Roof

New York Times Top Stories •
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Fuel costs have surged after the U.S. and Israel struck Iran on Feb. 28, pushing the average gasoline price to $4.50 a gallon from $2.98. Brown University researchers report that the spike has added $40 billion in consumer costs, eclipsing the Pentagon’s $29 billion war budget.

The war’s toll hits the working class hardest. Households in the lowest 18 percent now spend more than half a week’s income on fuel, while the top earners barely change usage. Diesel prices have leapt over 50 %, inflating transportation costs for goods and freight, and forcing FedEx and UPS to add jet‑fuel surcharges.

Supply disruptions in the Strait of Hormuz may keep prices elevated for months. Global inventories, already low, could collapse by May’s end, pushing oil to $200 a barrel. A $5‑per‑gallon scenario would add $513 to a typical household’s summer bill, amplifying pressure on groceries and travel.

These spikes expose a political liability for the Trump administration. Visible price hikes on roadside signs have already angered voters, threatening Republican fortunes in the November midterms as the president can no longer deflect the fuel‑price backlash.