Americans have so far mostly felt the impacts of the U.S.-Israel war against Iran in price increases at the gas pump, but that pain is about to spread as companies add fuel surcharges to their prices.
Iran’s effective closure of the Strait of Hormuz, a key passageway for a fifth of the world’s oil shipments, spiked oil prices past the key $100 per barrel level. The jump in oil prices boosted the U.S. average price for a gallon of regular gas by more than 50 cents earlier this week to $3.45, according to Gas Buddy, which tracks nationwide pump prices. Crude oil typically accounts for roughly 50% to 60% of the cost of a gallon of gasoline.
Companies across industries are following up with their own fees that will likely dribble down to consumers, experts said. Package delivery company UPS, shipping giant Maersk, chemicals firm Ecolab and airlines Cathay Pacific and Air India have all announced fuel surcharges since the U.S. and Israel launched attacks on Iran.
“We expect more such announcements until oil prices cool meaningfully from four-year highs,” Raymond James Investment Strategy Analyst Pavel Molchanov said in an email.
The surcharges and when Americans are likely to see them vary by company.
