Topics: US News, World News, Money, Food and Drink, UK News, Iran, Israel
The conflict in Iran is having a knock-on effect on our everyday lives, and we'll soon notice price hikes in three key areas.
The US and Israel launched strikes on targets in Iran's capital city of Tehran on February 28, throwing the Middle East into turmoil.
Operation Epic Fury killed Iranian Supreme Leader Ali Khamenei, with his son Mojtaba Khamenei taking over.
Most recently, Trump slammed UK Prime Minister Sir Keir Starmer and America’s ‘special relationship’ with the UK, amid the country’s response to the conflict in Iran.
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Trump had urged other countries to send warships to protect
His remarks came after Starmer said the UK was working with allies on finding a ‘viable, collective plan’ to reopen the strait, amid surging oil prices.
Escalating tensions have seen the world’s busiest oil shipping channel, the Strait of Hormuz, brought to a standstill, as diesel prices increase to $5 per gallon, according to data from GasBuddy.
This is only the second time in US history that diesel has hit such heights, since 2022.
Unfortunately, rising diesel prices are expected to hit three key areas particularly hard: food, deliveries and housing.
First, food prices are likely to climb, because farmers rely heavily on diesel to run tractors and harvest crops, and those costs are already rising sharply.
One Virginia farmer told NBC News it now costs him around $500 just to fill his tractor, which 'doesn’t last long.'
On top of that, fertiliser prices are increasing because key ingredients like urea and ammonia pass through the Strait of Hormuz, which has been disrupted by the conflict.
With trucks responsible for transporting more than 80 percent of agricultural products in the US, higher fuel costs will quickly impact supermarket prices.
Some 92 percent of dairy, fruit, vegetables and nuts in the US are shipped by trucks, according to the USDA.
Secondly, delivery and shipping costs are increasing. Courier giants like UPS and FedEx have already introduced surcharges in response to higher fuel prices, while airlines are raising fares as jet fuel costs climb.
Even if you’re not ordering internationally, these added costs ripple through domestic delivery networks, making everything from online shopping to takeaway food more expensive.
Maybe take this as a sign to cancel that unnecessary clothes order...
Finally, housing and construction costs are set to rise. Heavy machinery such as bulldozers and excavators runs almost entirely on diesel, and so does the transport of building materials.
As fuel becomes more expensive, so too does construction, pushing up the cost of new homes, infrastructure projects and even basic renovations, as Forbes reports.
Although these increases may not be felt overnight, experts warn they will build steadily over the coming weeks.
As if our budgets aren't already stretched enough...
