From gas prices to farming, US economy feels the ripple effects of the war in Iran

+ Accessibility links Skip to main content Keyboard shortcuts for audio player Open Navigation Menu --> Newsletters NPR Shop Close Navigation Menu Home News Expand/collapse submenu for News National World Politics Business Health Science Climate Race Culture Expand/collapse submenu for Culture Books Movies Television Pop Culture Food Art & Design Performing Arts Life Kit Gaming Music Expand/collapse submenu for Music Tiny Desk New Music Friday All Songs Considered Music Features Live Sessions The Best Music of 2025 Podcasts & Shows Expand/collapse submenu for Podcasts & Shows Daily Morning Edition Weekend Edition Saturday Weekend Edition Sunday All Things Considered Up First Here & Now NPR Politics Podcast Featured Wait Wait...Don't Tell Me!

+ Fresh Air Wild Card with Rachel Martin It's Been a Minute Planet Money Get NPR+ More Podcasts & Shows Search Newsletters NPR Shop Tiny Desk New Music Friday All Songs Considered Music Features Live Sessions The Best Music of 2025 About NPR Diversity Support Careers Press Ethics From gas prices to farming, US economy feels the ripple effects of the war in Iran The war with Iran has pushed gas prices above $4 a gallon.

+ National From gas prices to farming, US economy feels the ripple effects of the war in Iran April 1, 20264:41 AM ET Heard on Morning Edition By Scott Horsley , Leila Fadel From gas prices to farming, US economy feels the ripple effects of the war in Iran Listen &middot; 3:37 3:37 Transcript Toggle more options Download Embed Embed "> <iframe src="https://www.npr.org/player/embed/nx-s1-5767078/nx-s1-9711849" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player"> Transcript The war with Iran has pushed gas prices above $4 a gallon. It's also imposing new costs on farmers and beer makers. The stock market seems to be shrugging that off. Sponsor Message LEILA FADEL, HOST: The U.S. and Israeli war with Iran has pushed gasoline prices to their highest level in more than 3 1/2 years.

+ MICHEL MARTIN, HOST: But $4-a-gallon gas is only the most visible sign of the war's impact on the economy. Truck drivers, farmers and would-be employers are all feeling the ripple effects. Depending on how long it continues, the war could become a bigger drag on the economy in the U.S. and around the world. FADEL: NPR's Scott Horsley joins us now to talk about this. Good morning. SCOTT HORSLEY, BYLINE: Good morning, Leila. FADEL: So tell us about some of the ways the war is already being felt in people's pocketbooks. HORSLEY: Obviously, anyone who's filled up a car or truck lately has seen the sharp jump in gasoline prices. FADEL: Yeah. HORSLEY: Diesel prices are up even more. It's costing Pennsylvania farmer Rick Telesz a lot more to fuel his tractor since the war began. When I caught up with him yesterday, Telesz told me he's also worried about the rising cost of fertilizer. RICK TELESZ: Well, it's that time of year. I'm actually putting nitrogen fertilizer on my hayfields. HORSLEY: Telesz says fertilizer that was selling for $500 a ton before the war now costs as much as $850. So he's been forced to cut back, even if that might mean coaxing fewer bushels of corn and soybeans out of the ground this year. TELESZ: I can't pass those added costs on. It's just - I basically have to eat it all. HORSLEY: You know, grain prices have been really depressed in recent years, thanks to bumper crops and President Trump's trade policies, which have cut into exports. So farmers are really getting squeezed. Their costs are going up, but when it comes to harvest time, there's no guarantee they'll earn that money back. Court records show farm bankruptcies jumped 46% last year, and the war only makes those challenges tougher. FADEL: Where else are we seeing wartime price hikes? HORSLEY: Well, ultimately, those higher diesel fuel prices could raise the cost of everything that gets moved around the country by truck or rail. The Organisation for Economic Co-operation and Development projects the war will push inflation in the U.S. back above 4%. Even a six-pack of soda pop or beer could see a price hike. You know, over the weekend, Iran attacked aluminum facilities in Bahrain and the UAE. And Bart Watson, who's president of the Brewers Association, says that's pushing up the price of aluminum cans. BART WATSON: It's all a global market. And it doesn't take that much to tip supply and demand into a place where suddenly we're in a global deficit, and that means increasing prices for brewers and eventually consumers. HORSLEY: Watson says, for now, some brewers are absorbing those higher aluminum costs, but there may come a point where they have to pass the increase along. FADEL: Now, the U.S. job market was already showing some cracks before the U.S. and Israel started this war. How is that likely to be affected by the fighting? HORSLEY: Yeah. Employers were already skittish about adding workers. Add in the uncertainty that surrounds energy prices and how much money consumers are going to have to spend, and businesses are likely to get even more cautious. You know, yesterday, the Labor Department said the hiring rate in February - before the war began - was the lowest since the early months of the pandemic. We will get a more complete look at the March job market on Friday. FADEL: Despite all this, the stock market soared yesterday. What's that about? HORSLEY: (Laughter) Yeah. Investors were cheered by signs from both President Trump and his Iranian counterpart that maybe a negotiated end of the war is in the offing. That sparked a relief rally on Wall Street. The Dow gained more than 1,100 points yesterday. But this is not the first time investors have celebrated a possible truce only to find out that they were premature. So we will see if the optimism is warranted this time. Even when the fighting does end, analysts say it may take some time to unwind the damage that's been done by this war and bring down the prices that the conflict has pushed up. FADEL: NPR's Scott Horsley. Thank you for your reporting, as always. HORSLEY: You're welcome. Copyright &copy; 2026 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information. Accuracy and availability of NPR transcripts may vary. Transcript text may be revised to correct errors or match updates to audio. Audio on npr.org may be edited after its original broadcast or publication. The authoritative record of NPR’s programming is the audio record. Facebook Flipboard Email Read & Listen Home News Culture Music Podcasts & Shows Connect Newsletters Facebook Instagram Press Public Editor Corrections Transcripts Contact & Help About NPR Overview Diversity NPR Network Accessibility Ethics Finances Get Involved Support Public Radio Sponsor NPR NPR Careers NPR Shop NPR Extra Terms of Use Privacy Your Privacy Choices Text Only Sponsor Message Sponsor MessageBecome an NPR sponsor (function () { var loadPageJs = function () { (window.webpackJsonp=window.webpackJsonp||[]).push([[22],{1167:function(e,n,c){e.exports=c(323)},323:function(e,n,c){"use strict";c.p=NPR.serverVars.webpackPublicPath,Promise.all([c.e(1),c.e(2),c.e(3),c.e(4),c.e(84)]).then(function(e){c(3),c(1140),c(116),c(94),c(52),c(493),c(239),c(102),c(104),c(1141),c(143),c(1142),c(238),c(48),c(1143)}.bind(null,c)).catch(c.oe)}},[[1167,0]]]); }; if (document.readyState === 'complete') { loadPageJs(); } else { window.addEventListener('load', function load() { window.removeEventListener('load', load, false); loadPageJs(); }); } })();