Blogging for Change

How the Conflict in the Middle East Can Impact Your Finances

by Jesse Campbell on
3/12/2026
in Personal Finance
Young woman watching the news on TV.

However you may feel about the United States' military actions in Iran, you (and everyone else in America) is almost certainly going to feel a financial impact from the conflict. And while some of those impacts are already painfully obvious, there may be more consequences yet to come. 

So how can you expect the conflict in Iran and the Middle East to impact your wallet?

Gas prices are skyrocketing

The first, and most obvious, impact of the conflict is the price of oil, which recently went over $100 per barrel. That's over $25 per barrel higher than just earlier this month.

The reasons for the exploding gas prices are complicated, but a major factor is the Straight of Hormuz, which lies along the southern border of Iran and connects the Persian Gulf to the Gulf of Oman and the Arabian Sea.

The Straight of Hormuz is a global energy chokepoint. About one-fifth of all the world's petroleum liquids pass through the straight, representing about 20 million barrels of oil every day. Iran's military has functionally closed the Straight of Hormuz, disrupting global oil supplies.

According to AAA, the current average price for gasoline is $3.598 per gallon. It was $2.944 just a month ago.

Oil price increases go beyond the gas pump

Filling your gas tank is going to cost more, but the same is truth for planes, trucks, and every other form of transportation that relies of oil and gas. You can expect those costs to be passed along to you eventually.

That means plane tickets may get more expensive. And because the cost of delivering goods across the globe (and across the country) will likely go up, you can expect the prices of produce, retail items, and more to start increasing accordingly.

Inflation will be most prominent in energy-related categories to start, but be prepared for those costs to trickle down into all consumers prices eventually.

Investment portfolios may be at risk

Global conflicts like this create a lot of risk and uncertainty, which markets do not like. You may have already seen your retirement portfolio take a dip as a result of the uncertainty and chaotic market conditions.

The long term outcome is hard to predict. The conflict may end soon, in which case everything may quickly go back to how it was earlier this year. On the other hand, the conflict may drag out for months, continuing to inflate oil prices while potentially pushing the economy into a recession.

Whatever the future holds, today is uncertain, and that uncertainty adds risk to any investment opportunity. For now, you may be better off playing it extremely safe with your money.

How can you protect yourself?

You probably don't have the ability to stop a war or even end a naval blockade in the Straight of Hormuz. The best you can do for yourself right now is to be cautious with your money and adopt short-term strategies to make sure you don't overextend yourself while prices are on the rise.

Reduce fuel costs wherever possible

You know gas prices are on the rise, so your first step should be to plan around those price increases.

  • Combine errands and tasks to reduce time driving
  • Price compare gas stations using the GasBuddy app
  • Carpool or work from home if possible

Update your budget

Rising energy prices typically leads to rising prices for all consumer goods. You can get ahead of those increases by updating your budget accordingly.

  • Update your budget to include higher gas and grocery prices
  • Reduce expenses in non-essential categories to help offset these rising prices
  • Focus on building a significant savings fund before prices get too high

Protect your investments

Inflation caused by global conflicts can be bad for your investments unless you take steps to inflation-proof those investments.

  • Consider investing in Treasury Inflation-Protected Securities (TIPS)
  • Make sure your investment portfolio is diversified to reduce risk
  • Invest in real assets like real estate or precious metals

Pay off high-interest debt 

High-interest debts can be especially difficult to manage when inflation is on the rise. Before things reach a tipping point, consider focusing on paying off those high-interest debts.

  • You can see if you qualify for a balance transfer, ideally to a card with 0% APR
  • Ask your lender about a potential hardship program if you're already struggling with debt payments
  • Work with a nonprofit debt relief company like MMI; our debt management plan comes with an average interest rate below 8% and can get you out of debt 7x faster than paying on your own

If you're worried about rising prices and aren't sure where to start, MMI offers free financial counseling 24/7, online and over the phone. Our trained counselors can help you review your finances, direct you toward local resources, and put together a customized plan to overcome your unique financial challenge.

Tagged in Navigating change, Smart shopping

Jesse Campbell photo.

Jesse Campbell is the Content Manager at MMI, with over ten years of experience creating valuable educational materials that help families through everyday and extraordinary financial challenges.

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