Americans preparing for the summer barbecue season are facing higher costs as energy prices surge, largely due to ongoing tensions in the Middle East and the war in Iran, which have tightened global energy markets and driven up the price of propane and other fuels [1]. Propane, commonly used for backyard grills, has seen prices at the Mont Belvieu hub rise nearly 19% since the conflict began in late February [1]. Gasoline prices now average about $4.02 per gallon, up roughly 86 cents from a month ago, while diesel has climbed to $5.49, an increase of about $1.90 over the past year, according to AAA [1]. These higher energy costs are impacting the entire food supply chain, from ranchers running tractors and transporting cattle to the final prices consumers pay at the meat counter [1].
The U.S. cattle industry is also under pressure from a historically small herd size, now at its lowest in 75 years due to years of drought, rising costs, and an aging ranching workforce, which has forced producers to cut back [1]. As a result, beef supply remains tight and is slow to respond to increased demand, unlike commodities such as oil or metals [1]. 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, marking an increase of roughly 16% [1].
The Trump administration has announced efforts to address rising beef prices by increasing imports from Argentina and developing a long-term plan to strengthen the U.S. cattle industry [1]. However, experts like Glynn Tonsor, a professor of agricultural economics at Kansas State University, note that higher energy costs are being passed on to consumers and are likely to keep prices elevated for the foreseeable future [1]. Even if energy prices ease, beef prices are not expected to fall quickly due to the slow recovery of cattle supply [1].
For consumers, this means higher grocery bills and more expensive summer cookouts, unless demand shifts to cheaper alternatives. The ultimate impact will depend on broader economic forces and developments in the Middle East, which remain beyond the control of American shoppers [1].
CONCLUSION
Rising energy prices driven by Middle East tensions and a historically small U.S. cattle herd are pushing up the cost of propane and beef, leading to more expensive summer barbecues for Americans. With supply slow to recover and energy markets volatile, elevated prices are likely to persist, impacting both consumers and the broader food supply chain.