Americans cut driving and spending as Iran war lifts gasoline prices
Updated
Updated · Fortune · May 8
Americans cut driving and spending as Iran war lifts gasoline prices
8 articles · Updated · Fortune · May 8
An Ipsos poll of more than 2,500 adults found 44% drove less, 34% changed travel plans and 42% cut household spending as regular gas averaged $4.54 a gallon.
Some are combining errands, working remotely more, or switching to trains, scooters and bikes, while New York Fed research says lower-income households are being hit hardest.
Only 15% say high prices are pushing them toward an electric vehicle, but half expect costs to rise further and US energy projections do not show normalisation before 2027.
As the energy crisis deepens the divide between rich and poor, what happens when millions can no longer afford their daily commute?
Jet fuel prices have grounded an airline. What other critical industries are nearing a breaking point from sustained high energy costs?
With the Strait of Hormuz blocked, what is the plan to shield the US economy from future geopolitical energy shocks?
U.S. Gas Prices Surge Above $4: Economic, Political, and Global Fallout from the Iran Conflict and Strait of Hormuz Closure
Overview
Gasoline prices in the United States have surged over 30 percent in the past month, rising above $4 a gallon. This sharp increase is mainly due to the war in Iran, which has led to the closure of the Strait of Hormuz—a vital route for about a fifth of the world’s oil. The disruption has caused immediate financial strain for American households and created significant regional price differences, influenced by factors like taxes and supply networks. As a result, consumers are adjusting their spending, and the broader economy faces ongoing challenges from these record-high fuel costs.