The ongoing war between the US and Israel and Iran is causing fuel prices to rise rapidly, threatening economic instability worldwide. As the conflict enters its third week, it’s not just fuel prices that are affected – groceries, work schedules, stock markets, and interest rates are all being impacted.
According to energy experts, Iran’s control of the Strait of Hormuz, a crucial waterway for 20% of global oil supply, is causing concern. The US government had underestimated the threat, with former White House adviser Bob McNally stating that the strait would be “shut for weeks” if attacked.
Crude oil benchmarks are now near $100 per barrel, up 70% since January, and prices may reach record highs of $150 or more by the end of March. Energy forecaster Dan Pickering notes that while US fuel prices are rising, Asia is facing significant shortages due to its high dependence on Middle Eastern supplies.
The conflict is also affecting global markets, with the Dow Jones Industrial Average down 6% in a month and expected to dip further. However, energy producers are capitalizing on the price surges, with Exxon Mobil and Chevron reaching record highs.
Despite efforts by the US to provide naval escorts through the Strait of Hormuz, Iran’s control of the waterway is being demonstrated, with attacks on tankers and neighboring Gulf states. Energy expert Carolyn Kissane warns that if there’s no resolution in the next two-to-three weeks, fuel prices will rise significantly, causing economic instability worldwide.
The conflict also has significant political implications, particularly in the US, where midterm elections are approaching. President Trump is under pressure to end the war quickly, as high fuel prices are affecting his approval ratings. Energy analyst Pavel Molchanov notes that Iran needs resolution as well, as it relies on oil exports for its economy.
Source: https://fortune.com/2026/03/14/skyrocketing-energy-prices-inflation-mount-absurd-reality-iran-sinks-in