Iran war dents household costs

Eight weeks after the Iran war began, U.S. households are paying more for fuel, freight and some everyday essentials. (cbsnews.com) CBS reported on April 24 that the conflict had pushed nationwide gasoline prices above $4 a gallon and lifted the Consumer Price Index to 3.3% in March, the highest annual inflation rate since May 2024. (cbsnews.com 1) (cbsnews.com 2) AAA data cited by CBS put regular gasoline at $4.06 a gallon on April 24, up 8 cents from a month earlier and 89 cents from a year earlier. Brent crude was trading around $105 a barrel, up 44% from before the war started, CBS said. (cbsnews.com 1) (cbsnews.com 2) The immediate channel is energy. The Strait of Hormuz normally carries about one-fifth of the world’s oil supply, and the war has disrupted traffic through that waterway. (cbsnews.com) (eia.gov) The U.S. Energy Information Administration said in April that the Hormuz closure and related production outages were key drivers in its latest forecast. Its Short-Term Energy Outlook projected Brent crude averaging $115 a barrel in the second quarter of 2026 before easing, with disruptions still affecting trade flows into late 2026. (eia.gov 1) (eia.gov 2) Higher oil does not stop at the pump. Diesel and jet fuel feed directly into trucking, delivery and air travel costs, which then show up in shipping bills, ticket prices and retail margins. (cnbc.com) CNBC reported that Amazon added a 3.5% fuel surcharge on sellers and that JetBlue and United raised baggage fees in early April as fuel costs climbed. A moving company executive told CNBC fuel had risen from 3% to 5% of revenue before the war to 6% to 10% after it began. (cnbc.com) Groceries are a more mixed picture. The U.S. Department of Agriculture said food-at-home prices were unchanged from February to March and up 1.9% from a year earlier, while it forecast grocery prices to rise 2.4% for 2026 and restaurant prices 3.6%. (ers.usda.gov) That means the war is not the only force shaping food bills. The federal food forecast is lower than the jump in energy costs, but transport and packaging expenses can still keep pressure on store shelves if fuel stays high. (ers.usda.gov) (cnbc.com) Economists told CBS the damage may outlast the fighting because oil production, tanker routes and regional energy infrastructure will take time to normalize. Moody’s Analytics chief economist Mark Zandi said there is “no going back on oil prices” anytime soon. (cbsnews.com) For households, the clearest numbers are still the simplest ones: $4 gasoline, higher travel fees and a 2026 outlook that assumes energy markets will not fully settle quickly. (cbsnews.com) (eia.gov)