War Premiums Are Hitting Americans Right in the Wallet
Every conflict has a receipt, and this one is printing at registers across the country. After US and Israeli strikes on Iran disrupted flows through the Strait of Hormuz, higher energy costs are quickly filtering through to consumers. Gas prices have already moved past $4 a gallon on average, utility bills are rising, and more companies are rolling out surcharges or price increases to offset the hit.
- Airlines hiked fees across the board as Delta Air Lines raised baggage charges, while United Airlines and Southwest Airlines followed with smaller increases.
- Shipping costs climbed too, as FedEx added a 26.5% fuel surcharge, Amazon imposed a 3.5% seller fee, while USPS rolled out an 8% temporary surcharge.
The meter’s still running: The ceasefire is holding for now, but stability in Gulf energy flows is far from guaranteed. The OECD now expects US inflation to reach 4.2% this year, a sharp jump from 2.6% in 2025. With The New York Times noting prices are “unlikely to return to prewar levels anytime soon,” Americans are in for a slow burn at the register.
