“We witness not only a massive fossil fuel crisis but a vast upward transfer of wealth built on instability of fossil fuel markets and pain,” said an expert at 350.org
Gasoline prices hover near $4 for Regular at a Shell Station on Middle Country Rd. in Lake Grove, New York, on June 10, 2026.
(Photo by Thomas A. Ferrara/Newsday RM via Getty Images)
Stephen Prager
Jun 18, 2026
COMMON DREAM
US President Donald Trump’s war with Iran may finally be reaching a close. But consumers and businesses around the world will continue to pay the price in the months ahead as still-elevated energy costs funnel hundreds of billions of dollars to fossil fuel giants.
That’s according to a report from the environmental group 350.org released Thursday, following Trump’s signing of a memorandum of understanding with Iran this week to begin the process of formally ending a war that has sent global oil prices skyrocketing and saddled ordinary people with record fuel prices.
The group estimated that just 110 days of war resulted in the transfer of an additional $374 billion from consumers and businesses into the coffers of oil and gas companies beyond what would have been expected had the war never been launched.
And while Trump claims his agreement to end the war this week will avert an “economic catastrophe,” there will likely still be tremendous pain even if the Strait of Hormuz reopens promptly.
Using oil and gas pricing scenarios from the International Monetary Fund’s April 2026 World Economic Outlook and data on global consumption, 350.org predicted that by the end of the year, consumers and businesses will spend an additional $199.8 billion on oil and $128.1 billion on gas above a non-war scenario, making for a grand total of more than $700 billion as a result of the war.
This, the group said, is a conservative estimate, as it does not even take into account knock-on effects. The war will ultimately end up costing much more when factoring in inflation across the rest of the economy, resulting from higher fuel costs or fertilizer shortages caused by the strait’s closure, which has affected food prices.
It also does not take into account the resulting effects on economic output or employment as rising costs and lower consumer spending force companies to tighten their belts.
“The oil and gas industry is draining billions from people and businesses on the back of a war that has killed thousands and pushed millions toward poverty and hunger,” said Andreas Sieber, head of political Strategy at 350.org.
“Even if the Strait of Hormuz reopens tomorrow, we should expect prices to remain above pre-crisis levels,” he said. “We witness not only a massive fossil fuel crisis but a vast upward transfer of wealth built on instability of fossil fuel markets and pain.”
While the war has brought it into starker relief, previous reports from 350.org have shown that even if the US had never attacked Iran, the continued global dependence on fossil fuels was resulting in trillions of dollars of avoidable costs each year, including $9.3 trillion to mitigate climate-related damages and air pollution-related deaths each year, costs that disproportionately fall on the world’s poorest.
In order to alleviate economic strain from the war, Sieber said, “governments should tax these excess profits now and use the revenues to protect people, cut bills, and rapidly deploy renewables that make households and small businesses less vulnerable to the next fossil fuel shock.”
Estimates of inflation also do not account for how the war has heightened global instability and poverty, which will require additional resources for humanitarian relief efforts. In late April, the United Nations Development Program estimated that even if the conflict had ended then, more than 32 million people worldwide would be pushed into economic precarity.
This is not to mention the resources that will need to be expended to address the harms caused by the war itself.
In exchange for negotiations on Iran’s nuclear program, a portion of the memorandum of understanding requires the US to work with “regional partners,” presumably other Persian Gulf allies, to scrounge up at least $300 billion to help Iran pay for reconstruction and economic development after the country was devastated by American and Israeli attacks on civilian infrastructure and millions were displaced.
As a report from the International Rescue Committee detailed last week, the Iran war has also had cascading effects on other conflicts and catastrophes.
“Six months ago, the IRC warned that a New World Disorder was emerging,” said David Miliband, the humanitarian group’s president and CEO. “Since then, disorder has not only grown but accelerated. A war with Iran. A million people have been forced to flee their homes in Lebanon. A brewing global food security catastrophe that risks plunging millions more people into acute hunger. An expanding Ebola outbreak. Defanged diplomacy and collapsing aid budgets.”
“The Iran war couldn’t have happened at a worse time,” Miliband said in a New Yorker article published Thursday. “It set off a chain of events that’s very damaging.”
110 Days of Trump’s Iran War Cost US Consumers $53 Billion Extra in Raised Gas Prices
“Even if the Strait of Hormuz reopens tomorrow, we should expect prices to remain above pre-crisis levels,” said an expert at 350.org
A man pumps gas at the Chevron gas station on Sawtelle Blvd and Culver Blvd. on June 15, 2026, in Los Angeles.
(Photo by Kayla Bartkowski/Los Angeles Times via Getty Images)
Stephen Prager
Jun 18, 2026
COMMON DREAMS
President Donald Trump said on Wednesday that if his war in Iran continued much longer, the US could have faced “economic catastrophe” with gas prices expected to soar as emergency oil reserves were exhausted.
But new reports suggest that although the war appears to be coming to an end and the Strait of Hormuz is reopening, extraordinary irreversible damage has been done, and the economic consequences will be felt well into the future.
The Institute on Taxation and Economic Policy (ITEP) estimates that as a result of the war, Americans have paid nearly $54 billion extra for gas and fuel, amounting to more than $400 per household, than if the war had never started.
In the wake of the memorandum of understanding signed between the US and Iran, Trump has tried to claim credit as average gas prices have fallen below $4 for the first time since the early days of the war in March. However, gas still costs 25% more than it did last year.
This state of affairs can be expected to continue into the future. As The Associated Press reported Thursday morning:
Even as gas prices start to decline, it is anticipated to take weeks or months for oil to start flowing through the Strait of Hormuz again...
And Gulf oil producers that throttled back production will need time to get the oil moving again. Analysts also say ship captains may take their time to decide if passage is safe and that the threat of attack from Iran has truly receded.
In addition, refineries typically pay for crude oil a month or more in advance, so even after oil prices drop, they won’t immediately be processing cheaper products.
Fighting over the Strait of Hormuz disrupted not only supplies of crude and refined fuel but also the supply chains for fertilizer, food, and even footwear. Businesses expect higher costs to linger, which means their customers might need to prepare for that too.
Patrick De Haan, a petroleum analyst at GasBuddy, told CBS News it will be “a very long, multi-month to multi-year process for things to fully normalize,” and that it could take “until potentially mid-to-late 2027” for gas prices to return to pre-war levels.
Even as Americans, and indeed consumers around the world, continue to see their pocketbooks drained in the coming months, there is one big winner here: the fossil fuel industry.
An analysis released on Thursday by the environmental group 350.org shows that over the course of the war, households and businesses have paid the oil and gas industry an additional $374 billion in profits due to higher prices driven by the war.
Based on pricing scenarios from the International Monetary Fund, the group projected that even with the Strait of Hormuz open, the amount siphoned off could balloon to over $700 billion by the end of the year.
“Even if the Strait of Hormuz reopens tomorrow, we should expect prices to remain above pre-crisis levels,” said Andreas Sieber, 350.org’s head of political strategy. “We witness not only a massive fossil fuel crisis but a vast upward transfer of wealth built on instability of fossil fuel markets and pain.”
“Even if the Strait of Hormuz reopens tomorrow, we should expect prices to remain above pre-crisis levels,” said an expert at 350.org
A man pumps gas at the Chevron gas station on Sawtelle Blvd and Culver Blvd. on June 15, 2026, in Los Angeles.
(Photo by Kayla Bartkowski/Los Angeles Times via Getty Images)
Stephen Prager
Jun 18, 2026
COMMON DREAMS
President Donald Trump said on Wednesday that if his war in Iran continued much longer, the US could have faced “economic catastrophe” with gas prices expected to soar as emergency oil reserves were exhausted.
But new reports suggest that although the war appears to be coming to an end and the Strait of Hormuz is reopening, extraordinary irreversible damage has been done, and the economic consequences will be felt well into the future.
The Institute on Taxation and Economic Policy (ITEP) estimates that as a result of the war, Americans have paid nearly $54 billion extra for gas and fuel, amounting to more than $400 per household, than if the war had never started.
In the wake of the memorandum of understanding signed between the US and Iran, Trump has tried to claim credit as average gas prices have fallen below $4 for the first time since the early days of the war in March. However, gas still costs 25% more than it did last year.
This state of affairs can be expected to continue into the future. As The Associated Press reported Thursday morning:
Even as gas prices start to decline, it is anticipated to take weeks or months for oil to start flowing through the Strait of Hormuz again...
And Gulf oil producers that throttled back production will need time to get the oil moving again. Analysts also say ship captains may take their time to decide if passage is safe and that the threat of attack from Iran has truly receded.
In addition, refineries typically pay for crude oil a month or more in advance, so even after oil prices drop, they won’t immediately be processing cheaper products.
Fighting over the Strait of Hormuz disrupted not only supplies of crude and refined fuel but also the supply chains for fertilizer, food, and even footwear. Businesses expect higher costs to linger, which means their customers might need to prepare for that too.
Patrick De Haan, a petroleum analyst at GasBuddy, told CBS News it will be “a very long, multi-month to multi-year process for things to fully normalize,” and that it could take “until potentially mid-to-late 2027” for gas prices to return to pre-war levels.
Even as Americans, and indeed consumers around the world, continue to see their pocketbooks drained in the coming months, there is one big winner here: the fossil fuel industry.
An analysis released on Thursday by the environmental group 350.org shows that over the course of the war, households and businesses have paid the oil and gas industry an additional $374 billion in profits due to higher prices driven by the war.
Based on pricing scenarios from the International Monetary Fund, the group projected that even with the Strait of Hormuz open, the amount siphoned off could balloon to over $700 billion by the end of the year.
“Even if the Strait of Hormuz reopens tomorrow, we should expect prices to remain above pre-crisis levels,” said Andreas Sieber, 350.org’s head of political strategy. “We witness not only a massive fossil fuel crisis but a vast upward transfer of wealth built on instability of fossil fuel markets and pain.”
No comments:
Post a Comment