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As Americans enter barbecue season, soaring energy prices are associated with it Middle East The tensions are driving up the cost of propane.
When energy prices rise, the extra costs trickle down into the food system and into everyday purchases, from meat shops to backyard barbecues.
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Propane, the fuel that powers many backyard barbecues, is also becoming more expensive as global energy markets tighten due to the war in Iran. (iStock)
Ranchers rely on fuel at virtually every step, from driving tractors to transporting livestock, and those higher costs are often the result passed on to consumersTonsor said.
This pressure is manifesting itself in the energy markets. Gas prices now average $4.02 per gallon, about 86 cents more than a month ago. according to AAAwhile diesel – a key fuel for trucking – has risen to $5.49, up from about $1.90 over the past year, making it more expensive to transport cattle and beef across the country.
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The ripple effects go far beyond beef.
Propane, the fuel that powers many backyard barbecues, is also becoming more expensive as global energy markets tighten because Middle Eastern countries are such major suppliers to the world.
U.S. propane prices at the Mont Belvieu hub, the industry benchmark for this type of energy, have risen nearly 19% since the conflict began in late February.
But higher energy costs are only part of the story.
The livestock supply is still responding slowly. Unlike oil or metals, where supply can be increased relatively quickly, livestock production takes years to restart after a dip.
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The Trump administration says it is working to drive down beef prices by increasing supply through more imports 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 U.S. livestock herd is now at its smallest size in 75 years, meaning supply will remain tight for years to come droughtrising costs and an aging workforce in livestock farming, forcing producers to make cuts.
That tight supply is already driving prices up – and the conflict with Iran is only increasing the pressure.
According to U.S. Department of Agriculture data, the average price of beef rose from about $8.70 per pound in March 2025 to $10.08 a year later, an increase of about 16%.
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Even if energy prices decline, beef prices are unlikely to follow suit anytime soon.
For shoppers this summer, that could mean higher grocery bills — and more expensive meals to cook — depending on whether demand continues or consumers switch to cheaper alternatives. Much of that will depend on forces far beyond Americans’ backyards.
