Washington, March 22
US Transportation Secretary Sean Duffy has warned that the ongoing conflict with Iran is pushing up fuel and travel costs, saying it is the rising cost burden that is now affecting American consumers even as supply chains remain stable.
In an interview on ABC News' This Week with George Stephanopoulos, Duffy said airlines are not facing supply shortages but are under pressure from higher fuel prices. "It is the cost, right?" he said.
The warning comes as fuel prices in the United States have climbed sharply since the conflict began, with gasoline costs rising by about $1 per gallon in just over three weeks.
Duffy said he has been in touch with major carriers to assess the situation. "All of them were like, nope, we feel very good about our supply chains," he said.
However, the cost of jet fuel is increasing, feeding into broader travel expenses. Airlines are already adjusting operations in response to changing market conditions.
Duffy said there is no immediate reduction in overall flight availability linked to the conflict. "There's really no impact on how many flights we're going to have," he said, noting that some adjustments are related to operational factors rather than the war.
He also played down concerns about a prolonged spike in ticket prices, suggesting that airlines are preparing for worst-case scenarios. Referring to projections of oil reaching $170 a barrel, Duffy said carriers "do well when they plan for the worst and hope for the best".
The administration has taken steps to mitigate the impact of rising energy costs. Treasury Secretary Scott Bessent said the US is easing some restrictions on Iranian oil exports to stabilise prices. "We will be using the Iranian barrels against the Iranians to keep the price down," he said earlier.
Duffy said the current price pressure may not last if the conflict is resolved soon. "I think you're going to see a very quick rebound in energy prices when this conflict is resolved," he said.
He added that the administration expects the military operation to remain limited in duration. "The President said this is going to be, you know, a four to six-week operation," he said.
The rise in fuel costs is linked to disruptions in global oil flows, particularly through the Strait of Hormuz, a key shipping route for crude exports from the Gulf.
Duffy said the administration's broader objective is to prevent Iran from using energy markets as leverage, warning that disruptions in the Strait could impact global supply chains and economic stability.
- IANS
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