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Home » During the US-Iran war, soaring fuel prices put pressure on budgets other than gasoline pumps.
Economy

During the US-Iran war, soaring fuel prices put pressure on budgets other than gasoline pumps.

Editor-In-ChiefBy Editor-In-ChiefMarch 28, 2026No Comments4 Mins Read
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USPS and United Airlines.

Joe Radle | Grace Hieyun | Anadolu | Getty Images

As the U.S.-Iran war enters its fifth week, consumers are facing economic fallout affecting everything from travel plans to mail delivery.

Businesses and other organizations are increasingly preparing for an environment in which conflict and subsequent shocks to oil prices evolve from unexpected shocks to long-term challenges. As companies change their policies, Americans will reflect on their pocketbooks rather than just pumping gas.

Many companies are linking these adjustments to higher oil prices and reduced supply due to the blockage of the vital Strait of Hormuz. May contract price brent Crude oil prices, the global benchmark for oil prices, soared more than 55% in March, marking the biggest monthly increase since 1998. US crude oil prices Growth has declined slightly, registering a 49% increase since the beginning of the month.

Stock chart iconStock chart icon

Brent May 2026 Contract

The U.S. Postal Service announced Wednesday that it is considering temporarily imposing an 8% fuel surcharge on parcel and express mail deliveries. The tax, subject to regulatory approval, is expected to begin in late April and run through early 2027, according to the USPS.

“This temporary price adjustment will provide the Postal Service with needed flexibility by helping ensure that the actual costs of doing business are covered as required by Congress,” the Postal Service said in a statement.

The Postal Service said its rates are lower than those of its competitors. fedex and UPS CNBC previously reported that it increased additional fuel prices in response to the US and Israeli attacks on Iran.

united airlines The airline announced it would cut some low-profit flights in the coming quarters due to rising fuel costs, according to a memo from CEO Scott Kirby. This applies to routes that operate on weekdays, Saturdays, and at night.

The Chicago-based airline plans for oil prices to reach $175 a barrel and remain above $100 almost until the end of next year. Those prices could add $11 billion to United’s fuel costs, more than double the profit the airline made in its top year, Kirby said.

Kirby told CNBC’s Phil LeBeau this week that travelers should be prepared to pay more for tickets because of rising fuel costs. He said oil is the company’s second-largest expense after labor costs.

“I think freight rates will continue to rise in response to oil prices,” Kirby said. “In any business, certainly an airline, you have to ignore the cost of inputs.”

Rising crude oil prices may increase the cost of producing petroleum products. 3M CEO William Brown said this at an industry conference earlier this month. He said Command & Post-It’s parent company could implement price increases similar to those made after President Donald Trump instituted tariff policies about a year ago.

“If oil prices remain high, we will need to take the same steps we did last year and be more sensitive to pricing,” Brown said.

door dash and lift This week, it rolled out a “relief” program that included expanded benefits at gas stations. Advocates for drivers on gig work platforms argue that these workers don’t have the same ability to adjust rates as other independent contractors when costs rise.

“Drivers are feeling the cost of higher gas prices, which ultimately impacts their bottom line,” Yuko Yamazaki, Lyft’s driver manager, said in a statement.

Uber and Lyft signs installed on vehicles at San Francisco International Airport (SFO) on Sunday, August 3, 2025 in San Francisco, California, USA.

David Paul Morris | Bloomberg | Getty Images

The average price of unleaded gas in the U.S. jumped to around $4, an increase of about 33% from a month ago, according to AAA. The last time gas prices were this high was during Russia’s invasion of Ukraine in 2022, the group said.

Americans are losing confidence in the economy as they brace for faster inflation, according to data from the University of Michigan Consumer Survey released Friday. The general index fell by about 6% in March, the lowest level on record.

“War worsens consumer sentiment about the economy. This is not a shocking fact,” said Elizabeth Renter, senior economist at financial education platform NerdWallet. “When war begins, people expect economic constraints to worsen, such as rising prices.”

— CNBC’s Dan Mangan and Jeff Cox contributed to this report.

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