Why have gas prices surged nearly 27% since the Iran war began?

Beyond oil, the Iran war is pushing up costs on fertilizer, prescriptions, and mortgages, too

Gas is up 27% since fighting began, but the Strait of Hormuz also carries a third of the world's fertilizer, petrochemicals used in generic drugs, and helium for semiconductor manufacturing. Mortgage rates have climbed back above 6.4%, and economists warn $130 oil could tip the U.S. into recession.

A report found that the 2026 Iran war is the largest oil supply disruption in history

Oil flow through the Strait of Hormuz—responsible for roughly 20% of the world's oil supply—plummeted from 20 million barrels a day to "a trickle" during the initial weeks of the conflict between Iran, Israel, and the United States.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

The price of crude oil accounts for roughly half of the price displayed at the gas pump

While the price of crude oil has the largest impact on the price of gas, the cost of refinement, taxes, and distribution jointly make up nearly half of how gas is priced. Because of the many factors that influence the price of gas, eliminating taxes during expensive periods might not effectively lower prices.

The US shipped nearly 4 billion barrels of oil abroad in 2024

More than half of the US’s oil is exported as the country produces mainly light, sweet crude but has many refineries that handle heavy, sour types.

Explore a timeline of US dependence on crude oil from 1850 to 2023

Oil dependence began with the rise of oil as a commodity, followed by an era of geopolitical competition for the resource after World War II. The domestic fracking boom, which started around 2006, was driven by a desire to reduce the nation's dependence on international adversaries for energy.

Oil prices have been volatile for decades

This explainer shows oil’s rollercoaster: OPEC-led embargoes in the 1970s, shale surges in the 2000s, and the US flip to becoming a net oil exporter in 2020.

Iran’s 1979 revolution sparked a second oil shock—and reconfigured global energy markets

Widespread strikes in Iran’s oil sector during the 1978-79 revolution slashed production and triggered panic buying, flooding oil markets with fear.

See where the 100 million barrels of crude oil the world consumes daily end up

From drilling to driving, crude oil is processed in refineries and transformed into everyday products like fuel, plastics, lubricants, and cosmetics. The US currently uses about 20 million of those barrels per day.

How disruptions in oil markets can drive up the price of everyday goods

Most types of plastic are made from polymers derived from chemicals produced by the processing and refining of crude oil and natural gas. Spikes in the cost of either fossil fuel raise the cost of wrappings, tubs, and other plastic containers for products.

Jet fuel is expensive—which is one reason why it's tough to make an airline profitable

Jet fuel is typically a commercial airline's second-largest expense, second only to labor. Oil prices can be volatile—there have been recent significant increases in jet fuel prices given the 2026 Iran conflict, for instance.

How much do you pay in gas taxes?

The average national price jumped from $3.02 to $4.12 per gallon between March and April in 2026, but state prices range widely, from $3.66 in Texas to $5.79 in California, driven by differences in taxes, proximity to supply, and local competition.

How crude oil is split across oil markets based on geographic origin

Brent, West Texas Intermediate, and Dubai are the three crude oil classes and differ in terms of typical refinery uses, density, sulfur content, and suitability for financial benchmarking. Brent, which originates in the North Sea, is traders' go-to benchmark, in part, because it is easily shipped and politically stable, and used to price most of the crude sold internationally.

Iran-Iraq war drained over $1T from the combined economies of Iran and Iraq

Across eight years (1980-88), Iran and Iraq each lost about $500 B in GDP, infrastructure destruction, military expenses, disrupted oil exports, and mounting debt—totaling over $1 T in economic damage.

Oil prices spiked when Russia invaded Ukraine in 2022

The price of a barrel of Brent crude experienced volatility in the early 2020s. This chart shows price spikes at the beginning of the pandemic and again when Russia invaded Ukraine.

Japan attacked Pearl Harbor largely because it was running out of oil

This video traces how US-led sanctions and Japan’s near-total dependence on imported oil pushed Japanese leaders toward a high-risk plan: seize Southeast Asian oil fields and neutralize the American Pacific Fleet, hoping Washington would negotiate rather than fight.

The global economy runs on US dollars

Nearly 90% of international trade in 2019 was processed in US dollars. It's not only the most circulated currency in the world but also considered one of the most stable.

OPEC often intervenes to influence the price of oil

This guide explains how investing in oil works with in-depth explanations of each of the forces that control oil’s price. Oil is unique as a commodity in part because of OPEC’s role in regulating its price.

Hear how the US and Iran went from close allies to bitter adversaries after the 1979 revolution

Covering five decades of conflict and diplomacy, this podcast examines key flashpoints—from the Iran-Iraq War and the 1983 Beirut bombings to Iran's use of proxy forces and cyberattacks—offering insight into one of the most consequential and complex rivalries in modern geopolitics.

See where Americans spend the most on gas

Drivers in Wyoming spend the most on gas per month at about $279, while New York drivers pay the least at $132. Longer driving distances have a significant impact on how much American drivers spend on gas.

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

As of 2025, the US and Qatar dominate global helium production

The US's 42.6% share includes helium imported from Canada and refined within the states. Geopolitical conflicts can cause supply disruptions that impact several advanced technologies, including semiconductor manufacturing, aerospace systems, and medical imaging.

Iran's Revolutionary Guard Corps is independent of Iran's regular army and is one of the most powerful and influential military-political organizations in the Middle East.

Why car insurance rates are skyrocketing

The average annual premium for auto insurance coverage in the US rose 26% in 2024, and rates are only expected to increase. The rate hikes aren’t simply a result of more people getting into crashes. This video explores how a lack of trained auto mechanics, a tighter supply of used vehicles, record healthcare bills, and litigation are contributing to higher monthly insurance bills.

Is there an arms race in the Middle East?

In 2021, countries in the Middle East spent $168 billion on weapons. Defense spending in the Middle East has been falling in the last few years, but this doesn’t necessarily mean that the region is de-militarizing. In 2021, Saudi Arabia spent $55...

See how the income taxes in the US compare to other countries

The US's highest marginal income tax rate is 37%. That rate is compared to other countries' both in a map and accompanying chart. Denmark has the highest rate at nearly 56%, while a handful of countries don't use marginal taxes at all. In the Middle East, many countries count on oil and gas to finance their governments.

The overall economic effect of President Trump's 2025 tariffs remains unclear

Researchers from UCLA and Yale found that tariff revenue and gains to US producers largely offset importers' costs—but the broader picture is murkier, as the trade deficit rose, manufacturing jobs declined, and 90% of tariff costs were passed through to importers rather than absorbed by foreign exporters.

Investors collectively own $28T in US Treasury securities

The 10-year Treasury yield is a central measure of the health of the economy, shaping how much both the government pays on its debt and the cost of borrowing for the private sector. This explainer provides stats and explainers on the important metric.

Watch contemporary footage covering the US-backed Shah of Iran fleeing the country in the face of the 1979 Iranian Revolution

The United States has had a tumultuous relationship with Cuba since its 1959 revolution, highlighted by a nuclear crisis and a decades-long trade embargo.

Roughly 43 million US borrowers owe roughly $1.7T in student debt, the second-largest source of consumer debt behind mortgages.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

Louisiana's 'Cancer Alley' is infamous for having some of the highest industrial pollution, toxic air emissions, and cancer risks in the US.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

The American Society of Civil Engineers' infrastructure report card gave the US a C in 2025, its highest grade since the project launched in 1998.

The power and influence of the American presidency have expanded significantly over time—far beyond what the founders envisioned.

Jimmy Carter signed a 1978 bill that legalized home brewing, a move credited with kick-starting the craft beer industry.

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

Discover the catastrophic consequences of a failure of the US electrical grid—something that is more likely than many Americans think.

Explore an interactive map of battles from the American Revolution, along with detailed summaries of each engagement

Hurricanes, which rely on air consistently spinning in the same direction, cannot cross the equator because air curves in opposite directions north and south of it.

How fusion—which releases energy when two lighter atoms combine to form a heavier atom—differs from fission

Take a 3D tour of the Hajj, Islam's annual pilgrimage to Mecca, undertaken by more than 1.5 million Muslims each year.

Volcanic activity may have triggered the Black Death by spewing gases that led to crop failures in Europe, thus forcing the import of grain ships with plague-infested fleas.

Most of the observable universe's volume consists of voids and supervoids—enormous regions of space with little to no galaxies, stars, or light.

The word 'jazz' evolved from 'jasm,' 19th-century American slang for 'energy'

Experimental hantavirus vaccines and therapies, still under development, have long been funded by the US military.

Waves off the coast of Nazaré, Portugal, can reach over 100 feet and are caused by the area's deep underwater canyon geography