Image Credentials: Image Title: Americans Face Uphill Battle to Cut Energy Use as Iran War Drags On, Economists Warn Source: (sora.openai) Date: March 2026. Attribution: This image was created using AI-generated imagery (sora.openai) and does not depict a real-world scene.
By Open Chronicle Staff with Agencies
NEW YORK / WASHINGTON — As the U.S.-led conflict with Iran enters its second month, American consumers are being met with increasingly urgent calls to slash their energy consumption. However, leading economists and energy analysts warn that “demand destruction”, the point at which high prices force a permanent behavior change, remains elusive due to the nation’s deep-rooted reliance on fossil fuels.
The calls for conservation come as the national average for a gallon of regular gasoline climbed to $3.98 this week, a staggering $1.03 increase from just one month ago. Despite the sticker shock, experts tell CBS News that shifting the driving habits of 230 million motorists is “easier said than done.”
The “Stubborn” Demand for Crude
“Supply-side measures alone cannot fully offset the scale of the disruption,” the International Energy Agency (IEA) stated in a recent report. With the Strait of Hormuz effectively paralyzed, taking nearly 20% of global oil and gas off the market, the agency has suggested drastic measures reminiscent of the 1970s oil crisis: working from home, reducing highway speed limits, and implementing “car-free” Sundays in large cities.
Yet, for many Americans, these are not viable options. Nobel Prize-winning economist Paul Krugman noted that while driving less is the most effective way to blunt the crisis, the lack of robust mass transit in most U.S. regions makes gasoline an “inelastic” necessity for the working class.
“Gas prices might need to rise even further to push workers to carpool,” Krugman told CBS News, suggesting that the current $4.00 range may not yet be the “breaking point” for American demand.
Trump’s Strategic Levers
The Trump administration has attempted to tame the markets by releasing 172 million barrels from the Strategic Petroleum Reserve (SPR) and temporarily waiving summer gasoline regulations to lower production costs. While these moves provided brief relief, the “mother of all scenarios”—a sustained closure of the Persian Gulf—continues to drive volatility.
On Thursday, Brent crude settled near $101 a barrel following news of fresh Israeli strikes on Iranian infrastructure. Analysts at Rystad Energy suggest that true “demand destruction” typically doesn’t occur until oil prices hover between $120 and $130 a barrel for an extended period.
Economic Fallout
The surge is already rippling through the broader economy. The U.S. Postal Service recently announced postage hikes to offset rising transportation costs, and major airlines have begun cutting flight schedules to cope with the skyrocketing price of jet fuel.
While U.S. shale producers in Texas are poised for a $63 billion windfall from the high prices, the benefit to the domestic economy is being eclipsed by the “inflationary tax” on consumers. For now, the administration appears to be betting on a diplomatic breakthrough or a “final blow” military victory to reopen the Strait, as the American public shows little sign of being able to simply “drive less” their way out of the crisis.