Despite a tentative deal to end the Iran war, experts warn that higher prices for gas, groceries, and flights will likely persist. The conflict disrupted supplies of crude and refined fuel, as well as supply chains for fertilizer, food, and other essential items.

Gas Prices to Fall Slowly

Oil prices fell to around $80 per barrel following news of the tentative agreement, but refineries typically pay for crude oil a month or more in advance. As a result, gasoline prices will take time to drop, with the West Coast of the U.S. likely to see slower relief due to limited refining capacity.

Flights Won’t Get Cheaper Right Away

Airlines buy fuel in advance and adjust their schedules gradually, meaning lower oil and jet fuel prices will take weeks or months to be factored into the cost of commercial flights. Fuel surcharges may be the first area where passengers see a reprieve.

Grocery Prices to Remain High

The reopening of the Strait of Hormuz is unlikely to deliver instant relief at the grocery store, as fuel accounts for 15% to 30% of the total cost of food. It can take months for an energy shock like the one caused by the Iran war to wind through the food supply chain and raise grocery prices.

Farmers Struggle with Fertilizer Shortage

The war has also affected farmers, with roughly 30% of the world’s fertilizer passing through the Strait of Hormuz before the conflict began. Prices soared as the supply was cut off, and shipments will likely take a long time to return to pre-war levels.

Original reporting: Texarkana Gazette — read the source article.