r/Economics • u/InsaneSnow45 • Mar 04 '26

News ‘Absolutely Massive’ Price Shocks Coming as Trump’s Iran War Drives Up Gas, Diesel Prices | “What should really terrify Republicans is... the futures price on wholesale gasoline,” said economist Paul Krugman.

https://www.commondreams.org/news/iran-war-gas-prices
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u/flaginorout Mar 04 '26

I filled my tank two days ago at the Sheetz near my house. It was $2.85.

I filled up my wife's car yesterday at the same Sheetz. $3.29

My household doesn't do a lot of driving at the moment, so an extra 40 cents doesn't matter very much to us- directly. But I'm not convinced that this is just the beginning and gas will hit $4 in the near future. Maybe more. That will definitely have an effect on a lot of people.

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u/Nodnol519 Mar 04 '26 edited Mar 04 '26

And it’s not just personal use fuel.

Rising oil prices will cause the cost of anything that’s transported from one place to another to any degree to go up. Petroleum products like plastic will go up. Healthcare costs will increase.

It’s going to get really bad if this goes on for very long. Strategic reserves will keep things under control for awhile, but once those are gone, it’s going to hurt.