Sen. Tommy Tuberville, R-Ala., discusses strategy in the Iranian conflict on 'The Bottom Line.'
As Americans head into barbecue season, rising energy prices linked to Middle East tensions are driving up propane costs.
When energy prices rise, additional costs rise through the food system and everyday purchases, from meat counters to backyard grills.
“The impact of ongoing challenges in the Middle East on energy prices affects almost every aspect of the US economy and beef cattle are not immune,” Glynn Tonsor, professor of agricultural economics at Kansas State University, told FOX Business.
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Propane, the fuel that powers many backyard grills, is also becoming more expensive as global energy markets tighten due to the Iran war. (Stock)
Ranchers rely on fuel for almost every step, from running tractors to moving cattle, and those high costs often passed on to consumerssaid Tonsor.
Those pressures are reflected in energy markets. Gasoline prices are now around $4.02 a litre, up about 86 cents from last month, according to AAAwhile diesel – the main commodity fuel – rose to $5.49, up from about $1.90 last year, making it more expensive to transport cattle and beef across the country.
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The ripple effects go far beyond the beef.
Propane, the fuel that powers many backyard grills, is also becoming more expensive as global energy markets tighten because Middle Eastern countries are the world's largest suppliers.
U.S. propane prices at the Mont Belvieu hub, the industry's benchmark for this type of energy, have risen nearly 19% since the conflict began in late February.
But high energy costs are only part of the story.
Cattle availability is always slow to respond. Unlike oil or metals, where supply can be increased relatively quickly, cattle production takes years to ramp up after a dip.
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The Trump administration says it is working to lower beef prices by increasing supplies with more purchases from Argentina, while laying the groundwork for a long-term plan to strengthen the U.S. cattle industry. (Melissa Phillip/Houston Chronicle/Getty Images/Getty Images)
The US cattle herd is now the smallest in 75 years, keeping the supply strong for years droughtrising costs and aging farm workers resulting in producers needing to cut back.
That tight supply is already driving up prices — and the Iran conflict is adding pressure.
According to data from the US Department of Agriculture, the average price of beef has increased from $8.70 per pound in March 2025 to $10.08 a year later, an increase of about 16%.
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In turn, even if electricity prices fall, beef prices are unlikely to follow suit.
For consumers, that could mean higher grocery bills this summer — and prices cooking — depending on whether demand is there or consumers switch to cheaper alternatives. Much of that will depend on the strength of American backyards.
