April 20 (UPI) -- The market for oil is global, which is why events like the war in Iran affect oil prices -- and prices of the wide range of products made from oil -- literally everywhere. Federal data shows that the price at the primary crude oil hub in the U.S. was $66 a barrel in late February 2026 -- before the U.S. and Israel attacked Iran -- and $101 a barrel on April 13. Similar price increases have reverberated around the globe.
As an energy economist and an international trade economist, we field a lot of questions during such episodes, because when oil prices go up, manufacturers, businesses and ultimately consumers pay more.
Some basic economics
Crude oil may be the most important commodity in the global economic system.
It's a literal fuel for the industrial economy. It powers the engines that drive transportation and paves the roads vehicles drive on. It's a source for plastics from which the world's products get made and packaged, and a key ingredient at some point in almost every supply chain. Even fertilizers that boost the food supply are made from it. In short, it is difficult to imagine modern life without oil and its derivatives.
