Fuel prices may stay elevated for years, economist warns
Updated
Updated · WRAL News · May 1
Fuel prices may stay elevated for years, economist warns
1 articles · Updated · WRAL News · May 1
AAA said the US average rose 27 cents in a week to $4.39 a gallon, while North Carolina reached $4.05, up sharply from last month and a year ago.
NC State's Rob Handfield said damage to oil infrastructure during the Iran conflict could keep supplies tight for three to five years, potentially beyond 2026.
Diesel at $5.57 a gallon is nearing the June 2022 record of $5.81, raising costs for farmers and transport firms and likely pushing up grocery and other consumer prices.
With record fuel costs crippling farms, how will the Iran conflict impact global food security?
Can AI and renewable energy solve the oil crisis before it triggers a global recession?
How the Strait of Hormuz Blockade Triggered a Historic Surge in Fuel Prices and Global Inflation
Overview
The Middle East conflict that began in February 2026 triggered Iran's closure of the Strait of Hormuz, halting nearly 20% of global oil shipments and causing a sharp surge in fuel prices worldwide. This disruption, combined with widespread damage to regional energy infrastructure, led to soaring inflation, supply shortages, and economic strain across Asia, Europe, and the US. While US refineries ramped up production to ease shortages, global supply remained tight, pushing transportation and manufacturing costs higher. The crisis exposed vulnerabilities in fossil fuel dependence, accelerating investments in renewable energy and prompting governments to adopt immediate relief and long-term adaptation strategies to build resilience against future shocks.