In the aftermath of the US-Israeli attacks on Iran, oil futures (CL=F) have surged more than 17% in just a matter of days, topping $76 a barrel on Thursday amid fears of a drawn-out conflict in the Middle East.
Many Americans have already seen the trickle-down effects of higher oil prices at the pump. The national average price per regular gallon hit $3.25, up from $2.98 just a week ago and $2.89 last month.
However, fuel costs aren’t the only everyday costs expected to increase. Oil price spikes can have drastic impacts on other everyday expenses, including general transportation, groceries, household goods, utilities, and more.
Read more: What an extended war with Iran could mean for gas prices
The most obvious impact of higher oil costs is higher fuel costs for our personal vehicles in the form of gas, auto parts, and tires, but it doesn’t stop there.
Airplane fuel can also become more expensive, and when operating costs rise, airlines may be inclined to pass those higher costs on to travelers. The same can be said for shipping and trucking companies.
Even if you don’t have a personal vehicle, ridesharing companies have, in recent years, implemented surcharges to help drivers offset higher fuel costs.
When fuel costs increase, the cost to transport goods increases as well — which could mean higher price tags and shipping costs for everyday essentials.
Oil costs can indirectly impact food and grocery prices in a few different ways.
Apart from the fuel used to transport food from the farm to your table, oil is often used to power farm and factory equipment, and it’s a key ingredient in many fertilizers and pesticides, as well as plastic food packaging.
According to the International Energy Agency, direct and indirect energy costs, including from the use of oil and natural gas, can account for up to 50% of total variable costs for food production in advanced economies like that of the United States, consequently leading to higher food prices.
Think about what you typically throw in your shopping cart each time you go grocery shopping — this includes personal items, toiletries, cleaning products, and other household items. If most of those items are packaged in plastic, there’s a good chance you’ll have to pay a premium for them if oil prices rise.
So many household essentials and everyday items are impacted by oil price swings. This includes:
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Home heating and propane: The cost of crude oil directly affects heating oil and propane prices. Heating oil prices are up $0.160 per gallon from a week ago and $0.406 since last year, and while the average cost per gallon for residential propane is down, there were modest increases across the East Coast, according to the latest data from the US Energy Information Administration.
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Clothing and fabric goods: Many different types of fabric, including polyester and spandex, are derived from petroleum. When oil prices rise, consumers could see a modest increase in the price of those goods.
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Plastic household goods: Toys, kitchen utensils, plastic food storage containers, storage bins, and household decor can all be impacted by higher oil costs because many of these items are petroleum-based.
In most cases, oil is either a vital ingredient in everyday products or it plays a key role in the shipping and/or manufacturing of many everyday items. As such, the impacts of higher oil prices are felt far and wide.
This is why it’s more important than ever to stay informed on how oil prices are moving and look for ways to trim your costs in the meantime. A few easy ways to save:
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Cut back on unnecessary driving: Choose a more fuel-efficient alternative, like carpooling or public transportation, to save. Another option could be to walk or bike, if possible, to cut back on fuel altogether.
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Stock up on everyday goods now: Don’t wait for your costs to increase. Consider stocking up on goods you know you’ll need sooner rather than later by buying in bulk.
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Pad your budget so you can absorb the shock of higher costs: If it’s been a while since you last reviewed your budget, now may be the time to review your spending categories and set aside a bit more for each line item so you’re better prepared to handle higher costs.
Read more: 7 ways to save money on a tight budget