It Depends on Where You Live and Your Energy Source
The Iran conflict primarily affects oil prices, but natural gas and electricity markets are also connected.
Oil Heating (Northeast US)
If you heat with oil, you’ll feel the impact most directly. Heating oil prices track crude oil closely. If you have oil heat, consider:
- Locking in a fixed-rate contract with your supplier if available
- Budgeting for 20-40% higher costs
- Improving insulation to reduce consumption
Natural Gas
Natural gas prices have risen modestly but less dramatically than oil. If your home uses natural gas for heating or cooking:
- Expect 5-15% increases on utility bills
- The US produces most of its own natural gas, limiting the impact
Electricity
Impact varies by how your local grid generates power:
- Natural gas plants (40% of US electricity): Modest price increases
- Coal and nuclear: Less affected by the conflict
- Renewables (solar, wind, hydro): Not directly affected
- Oil-fired plants (rare in mainland US): Higher costs, but these are uncommon
What You Can Do
- Set your thermostat 2-3 degrees lower and wear layers
- Seal drafts around windows and doors (cheap, high impact)
- Use a programmable thermostat to reduce heating when you’re asleep or away
- Switch to LED bulbs if you haven’t already
- Run dishwashers and laundry during off-peak hours if your utility offers time-of-use pricing
- Check if your utility offers budget billing to smooth out monthly payments