Hawaii and Alaska are experiencing the sharpest electricity price increases as the global energy crisis triggered by the Iran war ripples through oil-dependent regions. Hawaii's largest utility is warning customers to expect a 20% to 30% jump in electric bills, while Fairbanks' Golden Valley Electric Association is also preparing residents for higher costs.

Unlike the mainland U.S., where abundant domestic natural gas has kept power prices stable, these remote regions rely heavily on petroleum for electricity generation. Last year, petroleum liquids accounted for more than 70% of Hawaii's large-scale power generation and 16% of Alaska's, according to federal energy data. This dependence makes them particularly vulnerable to oil price volatility.

Oil prices have surged over 30% since the conflict began in late February, driven by concerns about the Strait of Hormuz, through which about 20% of global oil and gas flows. While U.S. crude has retreated somewhat in recent weeks, the damage to energy costs in Hawaii and Alaska is already being felt. The contrast with the mainland, where natural gas prices have actually fallen, underscores how regional energy infrastructure determines vulnerability to global shocks.