The U.S. Postal Service is seeking to temporarily place a fee on packages due to rising fuel prices as the war in Iran continues to rattle energy markets.
The 8% fuel surcharge on packages under Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select is expected to take effect on April 26 and remain in place until Jan. 17, 2027. The Postal Regulatory Commission must review and approve the fee before it is enacted. If approved, first-class stamps and other mail services would not be affected.
“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the service said in a statement on Wednesday. “We have steadfastly avoided surcharges, and this charge is less than one-third of what our competitors charge for fuel alone.”
The development comes as the war in Iran has triggered the largest disruption to the global energy supply in history, due largely to Iran’s sweeping blockage of the Strait of Hormuz. Oil prices have spiked roughly 40%, approaching a record $120 a barrel earlier this month before stabilizing slightly.
BlackRock CEO Larry Fink said in an interview published Wednesday that one outcome of the war could end in a “steep” global recession if the energy market fails to even out.
“Iran remains a threat,” he said. “A threat to trade, a threat to the Strait of Hormuz, a threat to the peaceful coexistence of the GCC [Gulf Cooperation Council] region. I would argue that we could have years of above $100 [oil prices], closer to $150, which has profound implications in the economy. The $40 oil implication is one of abundance and growth; the other is an outcome of a probably stark, steep recession. I don’t think anybody knows what the outcome will be.”
HOW DOES ISRAEL FIT IN THE US-IRAN TALKS?
The Trump administration has signaled that the conflict, which began on Feb. 28, is winding down. Washington says it is engaged in negotiations with Iran on a settlement seeking to end the war.
“The president’s preference is always peace. There does not need to be any more death and destruction,” White House press secretary Karoline Leavitt said Wednesday. “But if Iran fails to accept the reality of the current moment … [Trump] is prepared to unleash hell.”
