USPS and United Airlines.
Joe Raedle | Grace Hi Yoon | Anadolu | Getty Images
Like the United States-Iran As war enters its fifth week, consumers face economic consequences that affect everything from travel planning to mail delivery.
Businesses and other organizations are increasingly preparing for an environment in which conflict – and the shocks that come with it crude oil price – goes from an unexpected shock to a long-term challenge. As corporate policies change, Americans will feel it in their wallets beyond the fuel pump.
Many companies associate these adjustments with the rise in oil prices, the blocking of Passage of the Strait of Hormuz depressing supply. Prices on the May contract for Brent – a global benchmark for oil prices – jumped more than 55% in March, on track for their biggest monthly increase on record since 1998. Oil prices in the United States are up slightly, recording an increase of 49% since the start of the month.
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Brent’s May contract in 2026
The U.S. Postal Service said Wednesday it plans to slap a temporary fuel surcharge of 8% on parcel and express mail deliveries. The tax, which requires regulatory approval, would take effect at the end of April and last until early 2027, the USPS said.
“This temporary price adjustment will provide needed flexibility to the Postal Service by helping to ensure that the true costs of doing business are covered, as required by Congress,” the Postal Service said in its statement.
The Postal Service said its rates were lower than those charged by its competitors. FedEx And UPS has increased its fuel surcharge fees following the US-Israeli strikes on Iran, CNBC previously reported.
United Airlines said it would be reduce on operating low-profit flights in coming quarters as fuel costs rise, according to a memo from CEO Scott Kirby. Routes that take place midweek, Saturdays and nights are among those targeted.
The Chicago-based airline expects oil to hit $175 a barrel and stay above the closely watched $100 mark until the end of next year. United’s fuel bill could increase by $11 billion at those prices, which would be more than double the profits the company made in its best years, Kirby said.
Travelers should prepare to pay more for their tickets due to higher fuel costs, Kirby told CNBC’s Phil LeBeau this week. Oil is the company’s second-largest expense, behind labor, he said.
“I think rates will continue to increase based on oil prices,” Kirby said. “In any business, but certainly in airlines, you have to pass on input costs.”
High oil prices can drive up production costs 3M products, CEO William Brown said at an industry conference earlier this month. He said parent company Command and Post-it could impose price hikes, similar to those implemented after the presidency. Donald TrumpAlmost a year ago, the country rolled out its tariff policy.
“If the price of oil remains high, we will have to take action like we had to do last year and be responsive on pricing,” Brown said.
PorteDash And Lyft deployed “relief” programs this week which included expanded rewards offerings at gas stations. Defenders of gig-work platform drivers say these workers I don’t have the same ability to adjust rates when costs increase, like other independent contractors.
“Drivers are feeling the cost of rising gas prices, which ultimately impacts their income,” Lyft driver manager Yuko Yamazaki said in a statement.
Uber and Lyft signage on a vehicle at San Francisco International Airport (SFO) in San Francisco, California, United States, Sunday, August 3, 2025.
David Paul Morris | Bloomberg | Getty Images
The average price of unleaded gasoline in the United States jumped nearly $4, an increase of about 33% from the previous month, according to AAA. The organization said the last time gas prices were this high was during Russia’s 2022 invasion of Ukraine.
Americans are growing less confident in the economy as they prepare for higher inflation, data from the University of Michigan Consumer Surveys released Friday. The overall index fell nearly 6% in March, reaching one of its lowest levels on record.
“War is making consumers’ feelings about the economy worse. It’s not a shocking revelation,” said Elizabeth Renter, senior economist at financial education platform NerdWallet. “When we go to war, people expect worsening economic constraints, including rising prices.”
— CNBC’s Dan Mangan and Jeff Cox contributed to this report.
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