Middle East tensions push up US fuel and food costs ^{CEFR B2}

Experts at Georgia Tech report that rising tensions in the Middle East have pushed up global oil prices and are already felt across the US economy. The national average retail gasoline price is more than $1.20 higher than in February, before the conflict escalated, and markets see only modest relief by fall as futures trade below current levels. Economists caution, however, that prices are likely to remain above pre-conflict levels for the foreseeable future.

The impact reaches beyond the pump. Jet fuel prices have roughly doubled since the initial spike, putting immediate upward pressure on airfares and making summer travel more expensive. Oil is also an input in many supply chains and in petrochemicals used to make fertilizer, so higher fuel costs can push up prices for a wide range of goods and food.

Government options have limits. The Strategic Petroleum Reserve holds around 400 million barrels and can release about 4 million barrels per day, roughly 20% of US daily demand; experts describe the reserve as a tool to buy time but say a prolonged conflict would increase vulnerability. Quick fixes such as price caps or demand subsidies carry trade-offs and can mask market signals, a lesson from Europe’s 2022 energy crisis. Specialists therefore advise practical measures to reduce exposure to volatile fossil-fuel prices, including fuel-efficient vehicles, heat pumps, electric vehicles and home energy upgrades.