As Iran war causes gas and airfares to spike, lawmakers warn of price gouging — but experts point to supply shocks
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With airfares and gas prices spiking, some lawmakers are warning of the potential for price gouging, even as experts point to extreme supply shocks.
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With the Iran war in its fifth week, consumers are getting hit hard by surging energy costs. Now, some lawmakers are warning of the potential for price gouging, even as experts point to extreme supply shocks. Traffic through the Strait of Hormuz , a critical maritime shipping route for global oil supplies, remains effectively at a standstill, causing the biggest oil supply disruption in history . Oil prices have soared more than 40% since the start of the U.S.-Iran war on Feb. 28 , triggering price spikes for gas and jet fuel. Brent crude, the global benchmark for oil, topped $112 a barrel on Friday before retreating. As of Tuesday morning, it was trading at about $103 . Gasoline , which is refined from crude oil, reached a nationwide average of $3.98 a gallon as of Tuesday, up about 35% from a month ago, according to AAA . Jet fuel prices are up about 106% versus a month ago, according to the International Air Transport Association, which measured data for the week ended March 20. Already, some airlines said they will increase fares or tack on fuel surcharges to tickets. Elizabeth Warren targets price gouging Sen. Elizabeth Warren , D-Mass., is now urging the Federal Trade Commission to watch for businesses trying to take advantage of consumers by raising prices more than necessary amid the conflict. "We write regarding our concerns that big corporations may seek to profit off President Trump's war against Iran by unfairly raising prices for American consumers," Warren and several other lawmakers wrote in a letter sent Tuesday to Andrew Ferguson, chair of the FTC, and shared exclusively with CNBC. Read more CNBC personal finance coverage Lawmakers warn of price gouging amid Iran war — experts point to supply shocks Donating from your IRA has tax advantages. A bipartisan bill may expand options BlackRock CEO Fink: Trump accounts may be 'significant' wealth-building tool The uneven cost of tariffs: Why some households will pay more than others When it comes to privat...
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