Soaring Fuel Prices Squeeze Chicago Businesses and Residents Amid Iran Conflict

The war in Iran has destabilized global energy production, leading to the largest oil market disruption in history and spiking costs at the pump for Chicagoans.

Apr. 9, 2026 at 8:26pm

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An abstract illustration featuring overlapping geometric shapes in shades of dark gray, blue, and red, conveying the turbulent impact of the Iran conflict on energy markets and the Chicago region.The Iran war's disruption of global fuel supplies has sent shockwaves through Chicago's economy, squeezing household budgets and business margins.Chicago Today

The conflict between the U.S., Israel, and Iran has severely disrupted global oil production and supply, causing fuel prices in Chicago to surge by over 25% in just one month. This supply shock is hitting both everyday drivers and businesses that rely on affordable diesel, like the Moran Transportation trucking company, hard. Experts warn the pressure will continue for months, as the Strait of Hormuz remains effectively closed, bottling up global oil reserves. While a temporary ceasefire was reached, the fragile deal is already in jeopardy, raising fears of even higher prices to come.

Why it matters

The Iran conflict has exposed the vulnerability of Chicago's economy to global energy market shocks. With gasoline expenditures being the largest energy cost for most households, the rapid price surge is straining family budgets. Businesses that rely on diesel, like the Moran Transportation trucking company, are also facing a major financial squeeze, threatening their ability to operate profitably. The prolonged nature of this disruption could have lasting impacts on the local economy if the situation is not resolved soon.

The details

The average cost of gas in Chicago has gone up over 25% since the start of the Iran war in late February, the single biggest month-over-month increase on record for the city. Diesel prices in the Midwest have spiked nearly 40% in the past six weeks, with the average price now over $5.30 per gallon. This supply shock stems from the effective closure of the Strait of Hormuz, a crucial oil shipping chokepoint off Iran's coast, after missile strikes. With global oil reserves bottled up, producers in the Middle East have also had to halt operations due to lack of export capacity.

  • On February 28, the U.S. and Israel launched attacks against Iran, destabilizing global energy production.
  • In the past six weeks, diesel prices in the Midwest have risen nearly 40%.
  • This week, the average price of gas in Chicago reached $4.23 per gallon, about 11 cents higher than the national average.

The players

Moran Transportation Corporation

A 46-year-old trucking company based in Elk Grove Village, Illinois that operates a fleet of 375-400 trucks across the Midwest.

Mike Moran

The president of Moran Transportation Corporation, who says the current fuel price crisis is the worst the company has faced in its history.

Sam Ori

The executive director of the Institute for Climate and Sustainable Growth and the Energy Policy Institute at the University of Chicago, who has warned that the Iran conflict has caused an "unprecedented heart attack for the global oil market."

Margaret Barnes

A lifelong Chicago resident who says the high gas prices have forced her to pick up extra shifts at her hospital job to afford fuel.

Lisa McGee

A full-time Uber driver living 73 miles south of Chicago in Kankakee County, who says the rising gas prices are severely impacting her work-life balance and livelihood.

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What they’re saying

“We're lucky to generate five or eight percent in profit and out of all that comes all of our mistakes. So our net profit gets down to three, four percent. … (And) this thing just eats away at our margins significantly.”

— Mike Moran, President, Moran Transportation Corporation

“Gasoline expenditures are the largest energy expenditure for your typical household in the United States … (and) it's not like when gasoline prices go up you can switch to something else. So that means household budgets will come under additional strains.”

— Sam Ori, Executive Director, Institute for Climate and Sustainable Growth and Energy Policy Institute at the University of Chicago

“I don't know what's going on, but it's a mess. I'll be glad when they resolve whatever they need to do, so life can get back to normal again.”

— Margaret Barnes

“What I'm spending in gas is a couple utility bills. It's affecting our livelihood and my work-life balance.”

— Lisa McGee, Uber Driver

What’s next

A tentative 2-week ceasefire between the U.S., Israel, and Iran was reached on Tuesday, but the fragile deal is already in jeopardy after Israel pounded Lebanon with airstrikes and Iran maintained control of the Strait of Hormuz. Experts warn that if the strait does not reopen soon, oil prices could skyrocket even higher in the coming weeks and months.

The takeaway

The Iran conflict has exposed the vulnerability of Chicago's economy to global energy market shocks, straining household budgets and threatening the profitability of businesses that rely on affordable fuel. This crisis highlights the need for the city and region to explore ways to reduce energy costs and increase resilience to future supply disruptions, whether through infrastructure investments, policy changes, or economic diversification.