US-Iran war drives $37B surge in American energy cos

A study released by Brown University’s Watson School of International and Public Affairs estimated that US consumers have paid over $37.3 billion in additional energy costs since Washington and Israel launched strikes on Iran on Feb. 28.

Fuel prices surge across the United States

The university’s Iran War Energy Cost Tracker showed that petroleum-related costs account for more than $20 billion of the increase, while diesel expenses have climbed by nearly $17 billion.

Researchers said the average American household is now paying roughly $285 more each month for gasoline and diesel compared to pre-war levels.

Jeff Colgan said the additional costs are directly affecting consumers and increasing financial pressure on families during travel and daily transportation.

Hormuz disruption shakes global energy markets

The sharp rise in fuel prices followed Iran’s decision to close the Strait of Hormuz, a critical global shipping route connecting the Persian Gulf with international energy markets.

The disruption has pushed global oil prices higher and intensified pressure on maritime trade routes, shipping schedules and supply chains already affected by regional instability.

Gasoline prices in the United States have climbed above $4.50 per gallon, compared to levels below $3 before the conflict began.

Regional infrastructure attacks deepen crisis

In addition to restricting maritime traffic, Iran has also targeted energy infrastructure linked to US-allied Gulf countries, further escalating market uncertainty and raising concerns over long-term energy security.

The Strait of Hormuz remains one of the world’s most important energy corridors, handling a significant share of global oil exports.

Analysts warn that continued instability in the Gulf region could sustain high fuel prices worldwide and increase inflationary pressure across major economies, including the United States and Europe.