Experts warn war with Iran could raise costs in Georgia, fuel prices leading the way

ATLANTA, Ga. (Atlanta News First) — Rising fuel prices caused by the war in Iran could ripple into flights, shipping and eventually groceries, supply chain experts told Atlanta News First on Tuesday.

President Donald Trump posted new threats Tuesday as Iran rejected a proposed ceasefire. Analysts say escalating tension around major shipping routes — including the Strait of Hormuz — can push global energy markets higher, and Georgia consumers feel those increases quickly.

AAA reported Tuesday that regular gas is averaging $3.73 per gallon in Georgia and diesel is averaging $5.30 per gallon.

Chris Gaffney, managing director of Georgia Tech’s Supply Chain and Logistics Institute, said when higher fuel costs persist, businesses begin factoring them into prices that reach consumers.

“Once we’re after four weeks, it’s starting to show up embedded in those costs,” Gaffney said.

Higher fuel prices can also hit travel out of Atlanta. Gaffney said jet fuel is a major expense for airlines, and prolonged increases can push up fares and fees and potentially reduce some international routes.

“You may see curtailing of some of those international flights,” he said.

Delta and JetBlue both raised baggage fees in response to rising fuel prices.

Experts said food prices could be a slower, but significant, impact — especially for Georgia agriculture.

Emory University supply chain professor Nikolay Osadchiy said fertilizer and other farm inputs often follow energy prices.

“That is going to probably add a little bit of inflationary pressure towards the end of the year,” Osadchiy said.

The American Farm Bureau Federation has also warned that volatility in energy markets and shipping through the Persian Gulf can reverberate through global fertilizer supplies.

Georgia’s ports and exporters could face additional disruptions. With increased detours and higher insurance costs, cargo schedules can shift quickly at the Port of Savannah.

Exporters — including poultry shippers — may have to rebook shipments if routes through the Strait of Hormuz remain threatened, Gaffney said.

“That box just got dropped off on the last best port,” he said, describing how carriers can redirect cargo during major disruptions.

Gov. Brian Kemp’s office said it is monitoring the conflict and potential impacts on Georgia families and businesses.

In a statement to Atlanta News First, a spokesperson said, “Our office remains in contact with national leaders as the situation in and around Iran evolves and the members of our armed forces continue to be in our prayers as we monitor the conflict and any potential impact on Georgia families and businesses.”

For now, gas prices in Georgia remain below the national average in part because the state gas tax is suspended. That suspension expires May 19. Some groups are already calling on Kemp to extend it if prices do not fall before then.