Global Oil Supply Disruptions Have Raised Fuel Costs
Higher gas and jet fuel prices are set to drive up operating expenses for logistics and travel-reliant businesses.
Updated on Sept. 30, 2026 in Inflation
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Gasoline prices have climbed 42.8 percent over the past year, while jet fuel costs have surged more than 100 percent due to ongoing geopolitical instability. These spikes in a global commodity are forcing businesses to navigate higher input costs across nearly every sector.
Why it matters
The Russian invasion of Ukraine and the Iran War have severely disrupted export routes through the Strait of Hormuz and the Red Sea. Businesses are now reacting to this uncertainty by hoarding oil, which further compounds market volatility and contributes to widespread price escalation.
Gas prices have risen 42.8 percent over the past year, while jet fuel costs have jumped more than 100 percent. The current environment has increased the cost to fill a standard fuel tank to $90.
The players
The Iran War
An active regional conflict contributing to the disruption of global oil supply chains.
Russian invasion of Ukraine
A major geopolitical event that has significantly disrupted the global energy market.
The details
Because oil is a global commodity, supply disruptions in the Middle East immediately flow into local markets worldwide. Companies are currently hoarding supplies as a hedge against future uncertainty, which limits available liquidity and keeps pressure on spot prices. This dynamic is expected to force businesses to pass higher logistics and travel costs directly to consumers, with airline ticket prices projected to be particularly expensive for year-end holiday travel.
Timeline
Gas prices have risen 42.8 percent over the past year.
Jet fuel prices have increased over 100 percent during the past year.
Holiday travelers will face high airline ticket prices in about two months.
Market Landscape
The current supply-side shocks follow a pattern set by the 1973 OPEC oil embargo, demonstrating how geopolitical conflicts in oil-rich regions trigger immediate, widespread price volatility for global operators. These disruptions highlight the fragility of trade corridors like the Strait of Hormuz and the Red Sea.
Operators should prepare for higher overhead costs in logistics and travel-heavy business functions as fuel prices remain elevated. Assess your supply chain for exposure to fuel surcharges and review travel budgets now to mitigate the impact of rising airline ticket costs before the holiday season.
The takeaway
Geopolitical instability in key trade corridors is turning oil into a volatile risk factor for all businesses. Monitor your procurement contracts for fuel-related escalator clauses and adjust your expense projections to account for persistent energy inflation through the end of the year.
Further reading
For additional context on how commodity volatility affects broad price trends, visit our Inflation section.
Source note: This article includes information reported by The Quinnipiac Chronicle.
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