U.S. Fuel Prices Hit Record Highs After Iran Attacks
Rising oil and gas prices are driving U.S. inflation six months after joint military strikes by the United States and Israel against Iran.
Energy costs in the United States have surged six months after the Federal government of the United States and the Cabinet of Israel conducted military attacks against Iran in late February. Diesel prices have reached a record high, exceeding $6 per gallon, while gasoline prices have risen 44% since the start of the conflict, averaging approximately $4.30 as of September 12, 2026.
The energy spike has extended to the travel sector, with airfares increasing by 23.4% in August compared to the previous year. Despite these increases, the broader economic impact remains limited. Core inflation, which excludes food and energy, rose 2.4% in August, and food price increases have remained modest at 2.7%.
Economists warn that while food prices are not yet heavily influenced by energy costs, prolonged fuel expenses may eventually force businesses to raise prices for consumer goods.
