Welcome to MoneyNerd. You’ve watched gas prices jump, but what’s next? Even with the ceasefire, the Iran war’s energy shock will keep traveling through the economy. Brace yourself for price rises ahead in these eight areas.
Also this week:
Still working on your taxes? (We’ve got some last-minute tips)
Trim those unused subscriptions (your budget will thank you)
Our weekly money tips (and more!)
‘Warflation’ hits beyond the gas pump
Photo by Elke Scholiers/Getty Images News
The war in Iran may be on pause, but its impact on prices isn’t.
“Warflation” continues to spread after weeks of disruption to global oil supplies, and gas prices aren’t the only thing rising — higher energy costs will also result in price hikes for everyday essentials.
Here’s what could get more expensive:
1. Anything that relies on diesel transport
Diesel fuel trucks, construction equipment, farm equipment and marine vessels. As diesel costs rise, so do costs for all kinds of production materials and finished goods.
2. Air travel
Airlines run on jet fuel, and costs are climbing. Airlines are already raising ticket prices and some plan to cut flights to save on fuel. Fewer flights lead to more competition for seats, driving up prices even further.
3. Food
Multiple pressure points are hitting food production. Higher diesel costs raise expenses for farm equipment and delivery trucks. Fertilizers — about a third of which pass through the Strait of Hormuz — are the biggest issue as nitrogen fertilizers and phosphate fertilizers are key to producing food staples like wheat, corn, rice, fruit and more.
Supply disruptions may force farmers to scale back during the spring planting season, which will eventually result in higher grocery prices.
4. Plastics and packaging
Plastic requires oil and natural gas to produce. About 85% of Middle Eastern polyethylene exports move through the Strait of Hormuz, which means disruptions could raise costs for all kinds of finished plastics: water bottles, credit cards, furniture, household items, food containers, car parts and anything that is sealed or wrapped in plastic.
5. Synthetic clothing
Most clothing today is made from petrochemicals, including polyester, nylon, spandex and fleece. The garment industry — especially producers of fast fashion — relies on synthetic fibers sourced through supply chains that run through the Strait of Hormuz. As shortages appear and costs of raw materials rise, the fabric costs will rise, too, and eventually show up in higher prices for clothing.
6. Technology and electronics
The tech and electronic products industry is being affected by dual disruptions. The Strait of Hormuz is a critical shipping route for graphite feedstocks, which are crucial for producing lithium-ion batteries, while helium is needed for semiconductors, fiber optics, electronics and medical devices. Supply disruption could lead to higher prices for smartphones, laptops, EVs, energy storage systems and diagnostic medical equipment like MRI machines.
7. Anything made with aluminum
Gulf countries supply about 9% of the world’s aluminum. They also supply 21% of unwrought aluminum imports and 13% of wrought aluminum imports into the U.S.
Aluminum is essential for constructing buildings, vehicles, airplanes, electrical power transmission, appliances and more. Delays in aluminum exports could hike up the price of construction products, industrial equipment, planes, cars and other machinery.
8. Cars
Plastic and aluminum price hikes, and other supply chain upsets, are likely to drive up costs of vehicles, as well. Any production disruptions abroad have the potential to snowball into U.S. auto production.
Ongoing conditions in the Middle East remain volatile, leaving the global economic outlook uncertain. For a closer look at how the conflict could affect the U.S. economy, read more here.
Smart Money: What ‘warflation’ costs you
In the news segment of the latest Smart Money podcast, senior news writer Anna Helhoski joins hosts Sean Pyles, CFP®, and Elizabeth Ayoola to explain how oil supply disruptions ripple outward through fertilizers, plastics, shipping and airline fuel — and why the timeline for price increases on most goods could stretch six to 12 months beyond what you're already seeing at the pump and the store.
Plus real estate investor and fellow Nerd Lisa Green joins Sean and Elizabeth to answer a listener’s question about buying land to build a mountain vacation rental.
Watch below or get the audio version.
Gas has surged over 40% since the start of the war
I don’t have to tell you gas prices are through the roof — they’re hitting household budgets hard and making many rethink their travel plans. But since I’m still reeling from sticker shock myself, here’s a closer look at the latest numbers.
Gas prices are up more than $1 — more than 40% — since the Iran war began on Feb. 28.
As of April 9, the average gas price in the U.S. is $4.166, according to AAA, which tracks gas prices.
Prices vary by state, with the highest averages in California ($5.929) and the lowest in Oklahoma ($3.477).
Brent crude oil — the global benchmark — has dropped below $100, settling at around $95 this week following Tuesday’s ceasefire. Oil futures hit a high of $119 on March 19.
Bookmark our gas price tracker for more updates.
- A.H.
We're listening! If you have an idea for something you'd like the MoneyNerd team to cover, drop us a line at [email protected]. And thanks for subscribing!
Still working on taxes? Here’s a tip
If you’re still working on your taxes, you might think there’s no way to reduce your taxable income for 2025. After all, the year ended three months ago.
But you’d be wrong.
Several types of tax-advantaged accounts, including individual retirement arrangements (IRAs), health savings accounts (HSAs) and — depending on what state you live in — 529 college savings plans let you make prior-year contributions until April 15 that may be tax-deductible.
Here’s how IRAs work
You can contribute up to $7,000 to an IRA for tax year 2025, or up to $8,000 if you’re age 50 or older.
If you’re not covered by a workplace retirement plan, and neither is your spouse, you can deduct your full contribution amount from your federal income taxes, even if you take the standard deduction.
If you or your spouse are covered by a workplace retirement plan, the deduction begins to phase out at a modified adjusted gross income (MAGI) of more than $77,000 for single filers or $230,000 for those married filing jointly, and it’s disallowed entirely at MAGIs above $87,000 for single filers or $240,000 for those married filing jointly.
And if you’re eligible to deduct some or all of your IRA contribution from your federal income taxes, you can make a prior-year contribution for tax year 2025 until this year’s tax deadline.
(Note that this only applies to typical IRAs which are funded by voluntary contributions. The SIMPLE IRA, despite its name, is more like a mini 401(k) plan for small businesses, and is funded by employee paycheck deductions and an employer contribution. Since your SIMPLE IRA contributions are tied to your paycheck, there’s no way for you as an employee to make prior-year contributions.)
In this day and age, not all IRAs are the same. Different providers (here are our picks for the best IRA accounts) offer different retirement planning tools and different investment selections. And a few even offer matches on IRA contributions.
(This is an excerpt from NerdWallet’s free Nerdy Investor newsletter. Sign up here.)
Have more tax questions? Check out some of our top tax stories.
Renting? A rent-reporting service could help you build credit. Some services add your rent payments to your credit reports. A strong payment history can show future landlords or lenders you're reliable.
Consult multiple sources when valuing your car. Car values can vary based on where and how you plan to sell. Comparing estimates can help you price accurately and get more for your car.
Check your loyalty programs for birthday rewards. Many restaurants and retailers offer perks like free food, drinks, beauty products or exclusive discounts during your birthday month.
Trimming paid subscriptions to save 💰
I’m so over paying for countless subscriptions and I’m not the only one: According to a recent NerdWallet survey, more than half of U.S. adults (55%) plan to significantly decrease the number of subscriptions they have in 2026 in order to save money.
I recently documented my journey of getting rid of the subscriptions that no longer brought me joy. And while I’ve resigned myself to always having some subscriptions in my life — Spotify and YouTube Premium, I can’t quit you — auditing my subscription list is saving me a considerable chunk of change this year. In fact, after cancelling 12 (!!) subscriptions in the first months of 2026, I’m saving $122 a month, or nearly $1,500 annually.
Want to save some cash and maybe even stick it to the streaming services for upping their rates (yet again)? Here’s what I did:
Make a list of all subscriptions and their associated costs: Cancel those subscriptions you don’t use, value or remember.
Quit cold turkey: Try getting rid of all your subscriptions (or at least most of them). I did this with streaming services — all five of them — because let’s be honest, I’m just rewatching “Game of Thrones” anyway, and those DVDs are easily accessible at my local library. (Full disclosure: I did have to buy a DVD player. Thankfully, they’re very reasonably priced these days.)
Find free or cheaper replacements: Speaking of the library, check out what your local branch offers that could replace current subscriptions. In addition to books, my library system has DVDs and CDs, paywalled news access, documentary streaming, and e-book and audiobook access using the Libby app free of charge.
Consider other costs: If a subscription is costing you additional money or time you’d rather allocate elsewhere, it might be time to unsubscribe. I cut out a hobby membership that was influencing me to buy too many project supplies. Another example could be a streaming service that works against your goal to spend less time watching screens.
Subscriptions aren’t bad, writ large, but it’s important to check in on them here and there to make sure they fit your budget and priorities. For more tips on cutting back, check out my subscription audit.
Here’s what else you may have missed this week from NerdWallet:
Two inflation reports dropped this week. Find out where the numbers landed.
Auditing your subscription services? We dug into the cost of Discovery+ and ESPN streaming.
We covered what to expect in your first meeting with a financial advisor (and what to watch out for).
The housing crisis has its own vocabulary. We wrote about the buzzwords that help explain what gets built, what it costs and whether you have a shot.
Multiple fintechs over the past few years have launched cards promising "fee-free" rewards on rent and mortgages — but is that model sustainable?
Paying for fuel with a rewards credit card can ease the sting from each fill-up. We explained how to leverage credit cards to save money on gas so that each fill-up doesn’t sting quite as much.
Elsewhere in money news:
Parents of Gen Z kids are using tuition money for down payments instead. (Fortune) 🔒
Speaking of Gen Z, what’s a Gen Z supersaver? (MarketWatch) 🔒
Some AI companies are trying to help you virtually try on products before you buy them. (CNBC)
Your MoneyNerd team: Courtney Neidel, Anna Helhoski, Rick VanderKnyff.
Was this newsletter forwarded to you? Subscribe here.
See all of NerdWallet’s newsletters here.
Until next week,
