The ongoing war involving Iran is pushing global oil prices sharply higher, raising fuel costs and threatening broader inflation that could affect consumers worldwide, according to an analysis by the Associated Press.

Crude oil prices recently climbed above $110 per barrel, their highest level since 2022, as the conflict disrupted global energy production and shipping routes in the Middle East. The surge has already begun to translate into higher gasoline and diesel prices, particularly in the United States.

The most immediate impact for consumers is at the fuel pump. Gasoline prices in the US have increased about 17% since the conflict began, reaching an average of $3.48 per gallon, while diesel prices have jumped roughly 23%, increasing costs for transportation, logistics and agriculture.

Energy markets have been rattled largely because the conflict has disrupted shipping routes and oil flows in the Middle East, particularly around the Strait of Hormuz, a critical channel for global energy trade. The uncertainty has tightened supply and driven oil markets higher.

Economists say the impact of higher oil prices extends far beyond motorists. Because most goods must be transported from factories to markets, rising fuel prices could push up the cost of everyday products—from food and household items to airline travel.

Higher energy prices are also expected to affect household energy bills, including natural gas used for heating and electricity. Petrochemical products derived from oil—such as plastics and fertilizers—may also become more expensive, potentially increasing manufacturing and agricultural costs.

Analysts warn that if elevated oil prices persist, the conflict could push inflation higher. Some estimates suggest US inflation could rise from around 2.4% to about 3%, potentially dampening consumer spending and slowing economic activity.

While companies may initially absorb some of the higher fuel costs to avoid raising prices, experts say prolonged disruption in energy markets would likely force businesses to pass those costs on to consumers.

The situation remains uncertain as the conflict continues, leaving global energy markets volatile and raising concerns about wider economic repercussions.