The market for oil is global, which is why events like the war in Iran affect oil prices – and prices of the wide range of products made from oil – literally everywhere. Federal data shows that the price at the primary crude oil hub in the U.S. was US$66 a barrel in late February 2026 – before the U.S. and Israel attacked Iran – and $101 a barrel on April 13. Similar price increases have reverberated around the globe. As an energy economist and an international trade economist , we field a lot of questions during such episodes, because when oil prices go up, manufacturers, businesses and ultimately consumers pay more . Some basic economics Crude oil may be the most important commodity in the global economic system. It’s a literal fuel for the industrial economy. It powers the engines that drive transportation and paves the roads vehicles drive on. It’s a source for plastics from which the world’s products get made and packaged, and a key ingredient at some point in almost every supply chain .…