Washington, D.C. – A new analysis from the Center for American Progress shows how the war in Iran is raising the costs of gasoline, electricity, and food, and triggering inflation throughout the U.S. economy.

Despite record levels of domestic fuel production, fuel prices in the United States are more exposed than ever to global fuel interruptions after a decade of building infrastructure meant to link domestic supply to overseas markets.

The price of crude oil and natural gas is already skyrocketing, but the severity of the war could elevate prices for a longer period, similar to the long-term impact of Russia’s invasion of Ukraine, the analysis shows.

And despite the easily foreseeable impact of hostilities on energy prices, the Trump administration failed to refill the nation’s Strategic Petroleum Reserve, which leaves the economy further exposed to supply shocks.

The analysis also shows how rising fuel costs will drive up the price of food and trigger inflation throughout the economy, such as travel and the supply of critical minerals for technology.

Read the analysis: “The War in Iran Will Raise Fuel Prices and Costs Throughout the Economy,” by Trevor Higgins and Akshay Thyagarajan

For more information, or to speak with an expert, please contact Sam Hananel atshananel@americanprogress.org.

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The Center for American Progress is a nonpartisan research and educational institute dedicated to promoting a strong, just and free America that ensures opportunity for all. We believe that Americans are bound together by a common commitment to these values and we aspire to ensure that our national policies reflect these values. We work to find progressive and pragmatic solutions to significant domestic and international problems and develop policy proposals that foster a government that is “of the people, by the people, and for the people.”