The Detroit Three carmakers are closely monitoring the newly ignited war in Iran for any impact it could have on their operations in the Middle East as well as how the prediction of gasoline prices soaring might affect U.S. new vehicle sales.
As the ongoing regional war in the Middle East continues to send shockwaves across global shipping networks, the longer the conflict drags on, the more likely it is to drive up transportation costs and force companies to either rethink supply chain strategies or price in the new pressures. Sunderesh Heragu, a Regents Professor of industrial engineering at Oklahoma State University who studies logistics and supply chains, said the eventual scope and duration of the conflict will determine how severely global trade routes are affected.
Oil tankers drifting aimlessly in the Persian Gulf may be the most visible economic symbol of the Iran war, but the damage is starting to spread to areas that aren’t as immediately obvious—American farmers, Asian chip makers, and European drugmakers, to name just a few. The war has sparked a supply-chain mess that’s disrupting the global economy and boosting inflation.
A recent Wall Street Journal investigation by Sharon Terlep paints a sobering picture of America's EV supply chain crisis. The March 31, 2026 article, "America Now Has an EV Rust Belt. High Gas Prices Won't Rescue It," chronicles how dozens of EV parts plants across the United States now sit largely empty—casualties of a dramatic market reversal that has left suppliers scrambling.
Florida residents have paid significantly more than the nationwide average for gasoline and diesel in recent weeks as the U.S.-Israeli war with Iran forces the Sunshine State to compete with Europe and Asia for fuel produced in Texas and other U.S. states, analysts said. The rare, lofty premiums highlight how Iran's blockade of the Strait of Hormuz has exposed vulnerabilities in oil and fuel supply chains around the world by upending historical trade routes.
Jeff Cohen
Chief Strategy Officer
INFORMS
Catonsville, MD
[email protected]
443-757-3565
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