Gas is just the start: What else the Iran war could soon cost you | CNN Business

Ever since the US and Israel struck Iran, the jump in oil and gas prices has become a major focus for markets and consumers alike. But that’s only the top of a long list of goods that stand to get more expensive. With oil prices shooting up, the cost to transport physical goods around the world has already increased and is poised to continue going up the longer the war continues. And because many businesses are already absorbing most of the cost of tariffs enacted by the administration over the last year, they have little wiggle room for them to assume higher transportation costs, said Brian Bethune, an economics professor at Boston College. “If we see the persistence of these higher (oil) prices for a period of time, then you’re going to see a persistent cost shock,” he said. Shipping rates are largely determined by diesel prices. For instance, a fuel surcharge of 21.5% kicks in for FedEx Ground and home deliveries when diesel prices hit at least $3.55 a gallon. As of March 9, diesel cost $4.86 a gallon, nearly $1 more than a week ago, according to data from the US Energy Information Administration. This means a 24.75% fuel surcharge will kick in for the week ahead. A simi