Middle East tensions driving up beef and propane costs this summer

Burger lovers warn that neighborhood dining may be more expensive this summer due to conflicts in the Middle East.

Global tensions are driving up energy prices, leading to higher costs for beef and propane used to fuel backyard grills; Just as Americans are getting ready for barbecue season.

“The impact of ongoing challenges to energy prices in the Middle East impacts nearly every aspect of the U.S. economy, and beef cattle are not immune,” Glynn Tonsor, professor of agricultural economics at Kansas State University, told Fox News Digital.

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Tonsor explained that farmers rely on energy for nearly every step of their processes, from fueling tractors in the field to driving trucks and transporting cattle, and these higher costs are often passed on to consumers.

These pressures are visible in the pump. The national average for a gallon of gasoline currently stands at about $4.09; That’s up roughly 93 cents from just a month ago. According to AAACosts are rising in almost every region.

Diesel, a key fuel for shipping and transportation, rose nearly $2.03 last year to $5.61, making it more expensive to transport cattle and beef across the country.

The ripple effects go far beyond beef.

Propane, the fuel that powers many backyard grills, is also becoming more expensive as global energy markets tighten, in part because countries in the Middle East are the world’s major suppliers.

U.S. propane prices at the Mont Belvieu hub, the industry benchmark for such energy, have risen nearly 19% since the conflict began in late February.

Beef prices are near record highs, but Americans aren’t holding back

But higher energy costs are only part of the story.

Cattle supply has been slow to respond. Unlike oil or metals, where supply can be increased relatively quickly, it takes years for cattle production to increase again after a decline.

The U.S. cattle herd is now at its smallest size in 75 years, leaving supply tight for years to come. droughtRising costs and an aging farm workforce are causing producers to need to cut back.

This tight supply is already pushing prices even higher, and the conflict in Iran is exacerbating the problem.

According to U.S. Department of Agriculture data, the average price of beef at grocery stores rose from about $8.70 per pound in March 2025 to $10.08 a year later; This means an increase of approximately 16%.

Amid ongoing conflicts in the Middle East that have created bottlenecks in fuel and propane transportation, Americans are likely to see higher prices for cookouts this summer.

As a result, even if energy prices fall, beef prices will be unlikely to keep pace.

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For shoppers, this means prices may remain high or rise further depending on whether consumers continue to shell out cash for steaks and burgers or choose to switch to cheaper alternatives.

Much of this stems from forces far beyond Americans’ backyards that continue to shape the cost of firing up the grill this summer.