The U.S. Feels Higher Prices While The World Is Facing Fuel Shortages

BusinessEnergyThe U.S. Feels Higher Prices While The World Is Facing Fuel ShortagesByRobert Rapier,Senior Contributor.Forbes contributors publish independent expert analyses and insights. Robert Rapier is a chemical engineer covering the energy sector.Follow AuthorApr 26, 2026, 12:33pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.BENGALURU, INDIA - APRIL 05: Auto drivers push their auto rickshaw uphill to join a queue for liquefied petroleum gas (LPG) at a filling station on April 05, 2026 in Bengaluru, India. The shortage of auto liquefied petroleum gas (LPG) in India, caused by supply uncertainties due to the ongoing geopolitical crisis in West Asia, is disrupting urban transport networks that millions rely on daily. As refuelling queues grow and supplies tighten, thousands of LPG-powered auto rickshaws and taxi fleets are being forced off the roads, worsening public mobility challenges across several Indian cities. (Photo by Abhishek Chinnappa/Getty Images)Getty ImagesWhen a major oil shock hits, most Americans notice it first at the pump.That’s exactly what’s happening now. Since the February 28 attack on Iran and the subsequent disruption of tanker traffic through the Strait of Hormuz, U.S. gasoline and diesel prices have moved sharply higher. Grocery prices are beginning to follow, as transportation costs ripple through the system. The March inflation report came in much hotter than expected. For many Americans, that’s where the story seems to end. We are experiencing higher prices, but so far, the supply chains are still working.Yet globally, this isn’t just a price story. It’s already becoming a supply story.A Global Chokepoint Under StrainThe Strait of Hormuz is the most critical energy artery in the world. Roughly one-fifth of global oil consumption, about 20 million barrels per day, normally flows through this narrow passage. It is also a key route for liquefied natural gas expor...