Oil Prices Fall as Iran Deal Raises Hopes for Slower Consumer Inflation
Oil prices fell after a tentative U.S.-Iran deal, but economists say gas, groceries and airfares will take weeks or months to ease.
- On Monday, oil prices fell to about $80 per barrel following a tentative U.S.-Iran deal to reopen the Strait of Hormuz, down from over $120 earlier in the conflict.
- Analysts warn that consumers will not see immediate relief, as energy shocks require weeks to move through refining and shipping systems before reaching retail prices.
- David Ortega, a food economics professor at Michigan State University, said food inflation will persist for months, as fuel comprises roughly 15% to 30% of total production costs.
- Gordon Ho, a business professor at the University of Southern California, suggested airlines may maintain fuel surcharges despite lower oil prices, while retailers expect higher costs through 2026.
- New York Magazine columnist Ed Kilgore noted that President Donald Trump faces pressure to deliver on affordability promises ahead of the midterms, though ending the war is only a first step.
30 Articles
30 Articles
US-Iran MOU Signals Normalization But Higher Fossil Fuel Prices Will Cost Over $700 Billions in 2026
New analysis by 350.org shows that people and businesses will continue to pay a steep price for fossil fuel dependence, even if the Strait of Hormuz fully reopens and remains so. According to 350.org calculations, an estimated $374bn has already been transferred from households and businesses to the oil and gas industry through higher prices. Based on pricing scenarios of the International Monetary Fund, even with the Strait of Hormuz open, 350.…
Countries reckon with aftermath of Iran war
Brazil said it would scrap fuel subsidies if oil prices stabilized following the signing of the US-Iran deal, as countries worldwide scrambled to plot the fallout from the conflict’s apparent conclusion. Crude prices tumbled further after Washington and Tehran finalized their interim deal, but analysts predict it could take months for global energy markets to normalize. Chile — which imports the vast majority of its fuel — cut its 2026 growth fo…
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