Higher fuel prices pinch budgets beyond the gas pump during the U.S.-Iran War

As the U.S.-Iran war enters its fifth week, consumers are facing economic consequences that affect everything from travel planning to mail delivery.

Companies and other organizations are increasingly preparing for an environment where conflict and the subsequent jolt in crude oil prices turn from an unexpected shock into a long-term challenge. As corporate policies change, Americans will feel it beyond the gas pump and in their pocketbooks.

Many companies attribute these adjustments to rising oil prices and reduced supply as the key chokeway in the Strait of Hormuz is blocked. Prices in May contract Brent Oil prices, the global benchmark for oil prices, rose more than 55% in March, on track for the biggest monthly gain since 1998. US oil prices It rose slightly less, recording a 49% gain month to date.

The U.S. Postal Service said Wednesday it is considering imposing a temporary 8 percent fuel surcharge on package and express mail deliveries. USPS said the tax, which requires regulatory approval, would begin in late April and run through early 2027.

“This temporary price adjustment will provide necessary flexibility for the Postal Service by helping to ensure that the true costs of doing business are covered as required by Congress,” the Postal Service announcement said. he said.

The Postal Service said its fee was lower than rates offered by competitors. FedEx And POWER SUPPLY It increased surcharges for fuel following US-Israeli attacks on Iran, CNBC previously reported.

United Airlines It will cut some lower-profit flights in coming quarters due to rising fuel costs, according to a memo from CEO Scott Kirby. Routes operating during midweek, Saturday and night hours are also among those targeted.

The Chicago-based carrier plans for oil to reach $175 a barrel and remain above the closely watched $100 barrier by the end of next year. Kirby said United’s fuel bill could rise by $11 billion at those prices, more than double the profits the company made in its best years.

Passengers should be prepared to pay more for tickets due to rising fuel costs, Kirby told CNBC’s Phil LeBeau this week. Oil is the company’s second-largest expense, after labor, he said.

“I think wages will continue to rise in line with oil prices,” Kirby said. “In any business, but certainly in airlines, you have to cover the costs of inputs.”

High oil prices may increase production costs 3 million products, CEO William Brown said at an industry conference earlier this month. He said Command and Post-it’s parent company could initiate price increases similar to those that followed President Donald Trump’s tariff policy implemented nearly a year ago.

“If the price of oil remains high, we will have to take action and be sensitive about pricing as we did last year,” Brown said.

Door Indicator And Lyft released this week “relaxation” programs this included expanded rewards offers at gas stations. Advocates for gig work platform drivers say these workers don’t have the same ability as other independent contractors to adjust rates when costs rise.

“Drivers are feeling the cost of rising gas prices, which ultimately affects their earnings,” Yuko Yamazaki, Lyft’s driver chief, said in a statement. he said.

The average price of unleaded gas in the USA has increased by approximately 33% compared to the previous month, approaching the 4 dollar mark. AAA. organization in question The last time gas prices were this high was in 2022, during Russia’s invasion of Ukraine.

Americans are feeling less economically confident as they brace for higher inflation, according to data released Friday from the University of Michigan’s Consumer Surveys. The headline index fell almost 6% in March, falling to one of its lowest levels on record.

“The war is worsening consumers’ feelings about the economy. This is not a shocking revelation,” said Elizabeth Renter, senior economist at financial education platform NerdWallet. “When we go to war, people predict worsening economic constraints, including higher prices.”

— CNBC’s Dan Mangan and Jeff Cox contributed to this report.