Fuel Price Surge Squeezes Airlines and Truckers

Rising costs for jet fuel and diesel could force companies to pass on higher prices to customers

Published on Mar. 10, 2026

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The surge in fuel prices due to the war in Iran is putting significant pressure on airlines, truckers, and other businesses. Jet fuel and diesel prices have spiked, with jet fuel reaching record highs not seen since 2022. This is especially troubling for Europe, which relies heavily on jet fuel imports from the Middle East. Many U.S. airlines do not hedge against fuel price fluctuations, making them more vulnerable. Trucking companies are also facing higher diesel costs and plan to pass on some of those increases to customers through fuel surcharges. The higher transportation costs will likely lead to higher prices for consumers on goods like food and clothing.

Why it matters

The rise in fuel prices is a major concern for the transportation industry, which relies heavily on jet fuel and diesel. If these higher costs persist, it could force airlines, trucking companies, and other businesses to raise prices for consumers, potentially leading to broader economic impacts. This highlights the vulnerability of industries that are heavily dependent on fossil fuels and the need to explore alternative energy sources.

The details

The conflict in Iran has effectively frozen oil shipments through the Strait of Hormuz, a major global oil chokepoint. This has contributed to a surge in the price of jet fuel, which has reached record highs not seen since 2022. The price of diesel, used to fuel trucks, has also risen significantly, by more than a dollar per gallon. Trucking companies plan to pass on some of these increased costs to their customers through fuel surcharges. Airlines, especially those in the U.S. that do not hedge against fuel price fluctuations, are also vulnerable to the higher costs and may need to raise fares.

  • The conflict in Iran began on February 28, 2026.
  • President Trump stated on Monday that the war would soon end, which sent oil prices down but they remain higher than before the conflict started.
  • As of November, the cost of crude oil accounted for about 50% of the price of a gallon of regular gasoline in the United States.

The players

Matthew Kohlman

Focuses on oil product prices in the Americas for Platts, part of S&P Global.

Amaar Khan

European head of jet fuel pricing for Argus Media.

Scott Kirby

Chief executive of United Airlines.

Christopher Knittel

Associate dean for climate and sustainability at M.I.T.

Neri Diaz

Chief executive of Harbor Pride Logistics, a Los Angeles trucking company.

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What they’re saying

“While crude, gasoline and diesel have spiked considerably, they have not approached or broken record highs like jet fuel markets.”

— Matthew Kohlman, Focuses on oil product prices in the Americas for Platts, part of S&P Global

“That is an incredibly large amount of supply that is now in danger and it's very unlikely that we'll be able to recover those volumes from other areas of the world, especially when we consider the Americas and Asia-Pacific are now looking to safeguard their own supply.”

— Amaar Khan, European head of jet fuel pricing for Argus Media

“Higher fuel prices would have a 'meaningful' impact on the company's financial results in the first quarter of the year.”

— Scott Kirby, Chief executive of United Airlines (CNBC)

“Because oil is pretty cheap to move around, every barrel of oil competes with every other barrel of oil in the world.”

— Christopher Knittel, Associate dean for climate and sustainability at M.I.T.

“So they don't push back that much.”

— Neri Diaz, Chief executive of Harbor Pride Logistics

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The surge in fuel prices due to the war in Iran is putting significant pressure on the transportation industry, highlighting the vulnerability of businesses heavily dependent on fossil fuels. As airlines and trucking companies look to pass on higher costs to consumers, it could lead to broader economic impacts and underscores the need to explore alternative energy sources.