Iran Conflict Drives Up U.S. Gas Prices and Mortgage Rates
The ongoing conflict in Iran has led to significant increases in U.S. gas prices and mortgage rates, impacting consumers nationwide.
The ongoing conflict in Iran has led to significant increases in U.S. gas prices and mortgage rates, impacting consumers nationwide.
Gas prices have surged across the country. In San Francisco, the average price for regular gas reached about $6 per gallon, up from $4.83 a month ago. Some stations are nearing $7 per gallon. This sharp rise is attributed to global supply disruptions, particularly through the Strait of Hormuz, and local refinery issues.
Similarly, in Cleveland, gas prices are approaching $4 per gallon, marking one of the steepest increases in recent history. As of Tuesday, the average price in metro Cleveland reached $3.86 for regular gas, a significant jump from $2.84 just a month earlier.
The conflict has also affected the housing market. Mortgage rates have surged to their highest level in five months, closely tied to rising energy prices and inflation. The average 30-year fixed mortgage rate rose to 6.43% last week from 6.3% the previous week. This increase has led to a notable decline in mortgage applications.
The Energy Information Administration (EIA) released its latest Short-Term Energy Outlook amid the Middle East conflict, projecting that Brent crude oil spot prices will average $79 per barrel in 2026, up from $69 in 2025. Retail gasoline prices are expected to average $3.34 per gallon in 2026, compared to $3.10 in 2025.
These developments underscore the far-reaching economic impacts of the conflict in Iran, affecting various sectors and consumers across the United States.
