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Fuel shock hits US as Iran war drives prices up, Amazon adds surcharge

The ongoing war against Iran is beginning to hit American consumers and businesses, with fuel prices surging, delivery costs rising, and concerns growing over wider supply chain disruptions.

Washington: The economic ripple effects of the conflict are becoming increasingly visible across the United States, as rising fuel costs push companies to adjust pricing strategies and brace for prolonged uncertainty.

Petrol prices in the US have climbed sharply, reaching an average of $4.09 per gallon on Friday, an increase of more than $1 compared to levels before the war, and the highest since August 2022. Diesel prices have seen an even steeper rise, jumping from $3.64 per gallon a year ago to $5.53, according to data from the American Automobile Association.

Diesel, a critical fuel for sectors such as farming, construction, and transportation, is expected to have a cascading impact on operational costs across industries.

Major corporations are already responding. Amazon has announced that it will introduce a 3.5 percent fuel surcharge on third-party sellers starting April 17, citing increased logistics expenses. Meanwhile, the United States Postal Service has proposed a temporary 8 percent surcharge on package and express mail deliveries to offset rising transportation costs.

If approved by the Postal Regulatory Commission, the surcharge would come into effect on April 26 and remain in place until January 17, 2027.

Experts warn that the situation could worsen if the conflict continues. Prolonged instability may disrupt global supply chains, further driving up costs and affecting availability of goods.

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