Iran War Triggers Inflation Shock in US: Petrol, Flights, Deliveries Turn Expensive

Washington: Inflation has hit people in the US, which is already fighting a war against Iran. Petrol prices have increased by more than $1, and diesel prices by $1.89. This is impacting agriculture and industry, and transportation has also become more expensive. 

The impact of the war is now directly reaching the pockets of American citizens. Jet fuel prices have also increased. 

Due to rising fuel prices, e-commerce giant Amazon has announced additional charges on delivery, while major airlines have also increased ticket prices.

How much did petrol and diesel become expensive?

The extent of inflation in the US can be gauged from the fact that the average price of gasoline has risen to $4.09 per gallon (about 3.8 liters), the highest level since August 2022. 

According to data from the American Automobile Association (AAA), the price of diesel has risen to $5.53 per gallon from $3.64 per gallon a year ago. Diesel is widely used in agriculture, construction, transportation, and other industries.

How much has Amazon and the Postal Service imposed surcharges?

The world's largest online retailer, Amazon, has confirmed that it will impose a 3.5 per cent fuel and logistics surcharge on third-party sellers from April 17. 

"Increased fuel and logistics costs have increased operating costs across the industry," Amazon said in a statement. 

The company said it has observed these increases on its own so far, but now it has become necessary to take these temporary steps to reduce costs.

The US Postal Service (USPS) has also sought to impose a temporary 8 per cent fuel surcharge on parcel and express mail deliveries. 

If approved, this surcharge would take effect April 26 and continue until January 17, 2027. 

Additionally, United Parcel Service (UPS) and FedEx have also increased their fuel surcharges.

Did Airlines hike ticket prices?

The war has led to skyrocketing jet fuel prices, the second-largest expense for airlines after labour costs. The CEOs of Delta, United and American Airlines indicated at a conference that they were raising ticket prices to offset the rising costs.

Delta Air Lines CEO Ed Bastian said his company is well-positioned to "recapture" fuel costs. American Airlines revealed it spent an additional $400 million on fuel, though surprisingly, passenger demand hasn't decreased despite this massive increase. 

What about Strait of Hormuz crisis?

The root of this entire economic crisis lies in the Strait of Hormuz crisis, through which 20 per cent of the world's oil is transported. 

According to experts, if this crisis continues, it could disrupt the supply chain in the United States. 

Chicago Federal Reserve Bank President Austan Goolsbee warned that if transportation costs rise, it will impact other prices as well. He said consumers will face "sticker shock," which will worsen already rising inflation. 

Did Inflation wreaks havoc?

Currently, the US core inflation rate in February 2026 was 2.50 per cent, but due to the war, oil prices remain close to $100 per barrel.