War With Iran Doubles Shipping Costs and Spikes Airfares

Hostilities between the United States, Israel, and Iran have triggered a global energy crisis after Iran closed the Strait of Hormuz. This strategic waterway typically handles 20% of the global oil supply, and its closure has caused jet fuel and bunker fuel prices to surge.

In the aviation sector, average domestic ticket prices in the U.S. rose from $293 in January to $383. The financial pressure has led to increased baggage fees and route closures, with American Airlines canceling flights for August and September. Analysts warn that these elevated costs may persist for months regardless of the conflict's resolution.

Simultaneously, container shipping costs from Asia to the U.S. have doubled since February 2026. A 55% increase in very-low-sulfur bunker fuel has forced carriers like Hapag-Lloyd to spend up to $50 million extra per week on fuel. Shipping companies including Maersk and MSC are implementing emergency fuel surcharges and integrating these costs into annual contracts starting July 1. U.S. Energy Secretary Alfie Moon stated that lowering fuel prices requires a resolution with Iran.