Energy Prices Spike Drives U.S. Inflation Higher in March

Costs jump 0.9% in March as fallout from U.S.-Israel war with Iran disrupts global oil supply

Apr. 11, 2026 at 2:01am

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A minimalist abstract illustration using bold geometric shapes and primary colors to conceptually represent the impact of rising energy prices on inflation.Soaring energy costs push inflation to new highs, straining household budgets and emerging as a key political issue.Charleston Today

Spikes in energy prices caused by the U.S.-Israeli war in Iran drove up inflation for Americans in March, according to the latest consumer price index figures released Friday. Costs jumped 0.9% in March compared to the previous month - the highest annual jump since May 2024. Fuel costs were the main driver, with gasoline and fuel oil together rising 10.9% in March compared to the previous month, and gas prices jumping 21.2% in March.

Why it matters

The war in Iran and resulting disruption to global oil supply through the Strait of Hormuz has had a major impact on inflation in the U.S., with energy costs spiking and putting pressure on household budgets. This is emerging as a key political issue ahead of the 2026 midterm elections, with Democrats blaming the president for the higher prices.

The details

The consumer price index rose 0.9% in March compared to the previous month, up from a 0.3% increase in February. Prices for all items together, including food, energy, shelter and other commodities, rose 3.3% from a year ago - the highest annual jump since May 2024. Fuel costs were the main driver, with gasoline and fuel oil together rising 10.9% in March compared to the previous month. Gas prices jumped 21.2% in March. The cost for airfare, largely driven by jet fuel prices, rose 2.7% in March, up from 1.4% in February.

  • The U.S. launched a joint war with Israel against Iran on February 28.
  • As of Friday, Americans were paying an average of $4.15 nationwide for a gallon of regular gas, up from less than $3 all year prior to the war.
  • Iran effectively closed the Strait of Hormuz, a vital global oil chokepoint, in response to the bombing campaign that killed the country's supreme leader.

The players

President Donald Trump

Launched the joint U.S.-Israel war against Iran on February 28.

Ken Martin

Chair of the Democratic National Committee, who blamed Trump for the higher inflation and its impact on working families.

Kush Desai

White House senior deputy press secretary, who said the administration has been working to mitigate the short-term disruptions from the war.

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What they’re saying

“Trump promised to 'lower prices on Day One,' and instead he waged an unhinged trade war and started an unpopular war with Iran — and what have Americans gotten in return? Nothing except even higher prices. Americans are sick and tired of this president putting his own interests first and using their hard-earned dollars to fund his war instead of making health care more affordable or expanding access to child care.”

— Ken Martin, Chair, Democratic National Committee

“Although gas and energy prices are seeing volatility, prices of eggs, beef, prescription drugs, dairy, and other household essentials are falling or remain stable thanks to President Trump's policies. As the Administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid trajectory thanks to the Administration's robust supply-side agenda of tax cuts, deregulation, and energy abundance.”

— Kush Desai, White House Senior Deputy Press Secretary

What’s next

Despite a tenuous ceasefire agreed to on Tuesday, Iran is still controlling the Strait of Hormuz, limiting the flow of oil through the vital global chokepoint. The administration says it is working to restore normal operations, but the impact on energy prices and inflation remains uncertain.

The takeaway

The war in Iran and resulting disruption to global oil supply has had a major impact on inflation in the U.S., with energy costs spiking and putting pressure on household budgets. This issue is emerging as a key political battleground ahead of the 2026 midterm elections, with Democrats blaming the president's policies while the White House touts its efforts to stabilize the economy.