FT Blog: US petrol prices surge as Trump’s Iran war triggers inflation worries
Financial Times article
This blog is based on the article published by the Financial Times on March 3 2026
https://www.ft.com/content/43fe2f44-d3ea-45c9-a641-e6f0e68949af
This article is part of the Financial Times free schools access programme. Details/registration here.
US petrol prices surge as Trump’s Iran war triggers inflation worries
This article from The Financial Times examines the consequences of rising oil prices for the US economy, particularly their impact on petrol prices and their implications for US inflation.
Questions
a. Describe what has happened to the price of petrol in the US in 2026. [2]
b. Using a demand and supply diagram, explain how a rise in the price of oil leads to a rise in the price of petrol in the US. [4]
c. Define the term inflation. [2]
d. Using an aggregate demand and supply diagram, explain how a rise in oil prices might lead to a rise in US inflation. [4]
e. Explain why low-income households might be most affected by a rise in petrol prices in the US. [4]
f. Explain how a rise in the price of oil might benefit oil producers in the US. [4]
Total [20]