Fuel prices have surged sharply in the wake of the ongoing Iran-related conflict, with global energy markets remaining volatile amid disruptions in key supply routes and uncertain geopolitical developments. The increase has pushed fuel costs significantly higher compared to pre-conflict levels, adding pressure on consumers and economies worldwide.
According to data from the American Automobile Association, the average petrol price in the United States reached $4.05 per gallon on Sunday, up from $2.98 before the conflict began. This marks an increase of nearly 35% in a short period, reflecting tightening global supply conditions and rising crude oil prices.
The broader oil market has also seen significant turbulence since late February 2026, when fresh tensions escalated in the region. Brent crude prices reportedly climbed from around $70 per barrel before the conflict to a peak of over $119 in March, before easing slightly to below $100 per barrel. Despite the partial correction, prices continue to fluctuate as uncertainty persists.
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A major factor influencing the price surge has been disruption in the Strait of Hormuz, a critical maritime corridor for global oil shipments. Reduced shipping flow through the waterway has tightened supply chains, contributing to sustained pressure on crude oil prices. Analysts say the situation has created prolonged instability in global energy markets.
US Energy Secretary Chris Wright has acknowledged that fuel prices may remain elevated for an extended period. He noted that while prices may have already peaked, there is no clear timeline for a return to earlier levels, including the $3-per-gallon range in the US. He added that it could take months or even longer for prices to stabilise, depending on geopolitical developments and supply recovery.
Industry experts also caution that even if tensions ease, fuel prices may not fall quickly. Oil markets typically respond slowly to supply recovery, with analysts often noting that prices tend to rise rapidly but decline gradually. This suggests that consumers could continue to face higher fuel costs well into the coming months.
Meanwhile, officials from energy-exporting regions have highlighted broader global impacts. Concerns include disruptions to shipping routes and pressure on supplies of liquefied natural gas, jet fuel, fertilisers, and other essential commodities. With uncertainty still surrounding peace negotiations and maritime security, the global energy outlook remains fragile, with markets closely watching developments in the Strait of Hormuz.
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