Experts Warn U.S.-Iran War Could Hike Prices for Americans

Disruptions to global oil supply from conflict in the Strait of Hormuz could drive up costs across the economy.

Published on Mar. 10, 2026

Got story updates? Submit your updates here. ›

Economists and trade experts say the U.S. war with Iran could drive up the price of nearly everything, from consumer goods and food to transportation and manufacturing, as disruptions to global oil supply ripple through the economy. Crude oil prices have surpassed $100 a barrel after the conflict brought oil tanker traffic to a near standstill at the Strait of Hormuz, a narrow sea passage through which about 20% of the world's oil supply flows.

Why it matters

The disruption to oil shipments through the Strait of Hormuz has severely limited supply, causing oil prices to spike. Because of the central role oil plays in the global economy, analysts warn the conflict could constrain economic growth and raise the possibility of stagflation, a condition in which the economy stagnates while inflation rises.

The details

The threat of attacks on shipping vessels led insurers like Lloyd's of London to refuse to insure ships going through the Strait of Hormuz, effectively stopping traffic in its tracks. This near-shutdown of the passage has severely limited supply, causing oil prices to spike. The war has already impacted Americans at the gas pump, with the national average price of a regular gallon of gasoline rising by about 40 cents over the past week to approximately $3.50.

  • On Monday, crude oil prices surpassed $100 a barrel for the first time in nearly four years.
  • Over the past week, the national average price of a regular gallon of gasoline has risen by about 40 cents to approximately $3.50.

The players

Kislaya Prasad

The academic director of the Center for Global Business at the University of Maryland.

Michelle Schulz

The founder of Schultz Trade Law.

Matt McClain

A GasBuddy petroleum analyst.

Got photos? Submit your photos here. ›

What they’re saying

“There was a risk that those ships would come under attack from Iran. And as soon as it seemed to become a reasonable possibility, insurers like Lloyd's of London refused to insure the ships going through, and that basically stopped traffic in its tracks.”

— Kislaya Prasad, Academic Director, Center for Global Business, University of Maryland (atlantanewsfirst.com)

“Oil and gas shipments are particularly important because they impact so many industries. Those prices are going to go up and they will make other prices go up. It really trickles down to everything.”

— Michelle Schulz, Founder, Schultz Trade Law (atlantanewsfirst.com)

“It's been a really long time in America since we have seen a price point increase so rapidly in just a matter of days. Unfortunately, the bad news is we are not done yet. We've got more to go this week — some 20 to 50 cents more per gallon on average across the country.”

— Matt McClain, Petroleum Analyst, GasBuddy (atlantanewsfirst.com)

What’s next

The conflict in the Strait of Hormuz and its impact on global oil supply remains an ongoing situation, with the potential for further price increases and economic disruption in the coming weeks.

The takeaway

The U.S.-Iran conflict has the potential to significantly impact the wallets of American consumers, as disruptions to global oil supply could drive up the prices of a wide range of goods and services across the economy. This highlights the interconnected nature of the global economy and the outsized role that energy prices can play in overall economic conditions.