Companies have almost no way to dodge climbing transportation costs, and those costs seep into virtually every corner of the US economy.
Trucking costs have hit their highest level since the pandemic; diesel prices have soared 77% over the past year.
Container shipping rates have climbed in tandem, and rail operators, parcel carriers such as FedEx, and even the US Postal Service have all raised their fees.
A shortage of truck drivers is pushing freight costs even higher. According to the US Department of Transportation, since early 2025 a federal crackdown has ordered more than 28,000 drivers off the road, while pressing states to revoke over 30,000 improperly issued commercial driver's licenses (CDLs) for foreign drivers.
Freight data firm DAT Freight & Analytics estimates that, because of the conflict with Iran, a truck driver working six days a week and covering 500 miles a day faces fuel costs $15,000 higher than before the war.
Some companies are shifting part of their cargo from highway trucks to rail in an effort to ease the pressure of rising road freight rates.
But rail's existing customers are facing higher bills as well. According to US Department of Agriculture data, in mid-September farmers shipping grain by rail had to pay a 48-cent fuel surcharge per car per mile, more than double the 19 cents of a year earlier.
"I don't think this situation will end anytime soon. Market chaos is driving prices higher." — Joseph Filincieri, sales manager at OEC Group, a logistics company in New York.
Retail sector
The Iran conflict not only pushed diesel to recent highs, but also drove the national average gasoline price to $4.49 per gallon and caused a sharp rise in motor oil prices.
Retailers have already taken countermeasures, and auto repair shops may pass the extra costs on to end consumers.
A Walmart spokesperson said that in early summer Walmart had already slightly raised prices on most motor oil products in its stores.
Data from Mizuho Securities shows that Costco recently raised the price of its Kirkland private-label motor oil, with the 10-quart size rising from $36 on May 30 to $58.
Higher oil prices combined with tighter supply are transmitting pressure layer by layer through the auto repair industry.
Stellantis, the parent company of the Jeep and Ram brands, recently switched the bulk motor oil supplied to dealership service departments for certain V-6 and V-8 engines from 0W-20 to 5W-20, which performs relatively worse in cold conditions.
Separately, it is reported that Trump rejected Iran's proposal for a seven-day ceasefire and told aides he plans to resume bombing Iran after the midterm elections are over.
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