Burger enthusiasts are bracing for a potentially pricier summer grilling season, largely due to escalating tensions in the Middle East. This global unrest is causing a spike in energy costs, which, in turn, is affecting the price of propane—an essential fuel for backyard barbecues during this popular season.
According to Glynn Tonsor, a professor of agricultural economics at Kansas State University, these ongoing challenges in the Middle East are impacting energy prices across the board, and the cattle industry isn’t exempt from feeling the squeeze.
Ranchers rely on energy for nearly every aspect of their operations—from fueling tractors to transporting cattle—so when energy prices rise, those increased costs often make their way to consumers. Recently, the national average for a gallon of gas climbed to about $4.09, which is up roughly 93 cents from the previous month. Rising costs are being reported in nearly every part of the country, as noted by AAA.
Additionally, the price of diesel, which is crucial for transporting goods, has surged by about $2.03 over the past year, now sitting at $5.61. This makes it pricier to ship cattle and beef across the nation.
The effects of these price increases aren’t just limited to beef. As global energy markets tighten, propane prices are following suit. The United States, reliant on Middle Eastern countries for propane, has seen prices rise nearly 19% since late February.
But energy costs aren’t the sole issue. The supply of cattle is not quick to bounce back from market downturns, unlike oil or metals. The U.S. cattle herd is currently at its smallest in 75 years, creating a long-term shortage. Factors like drought, rising expenses, and an aging workforce in ranching are compelling producers to cut back.
This tight supply is already driving prices up, with the situation in Iran only adding more strain. The average cost of beef at grocery stores jumped from around $8.70 per pound in March 2025 to about $10.08 a year later—a substantial 16% increase, according to USDA data.
As this summer unfolds, shoppers can expect high (and possibly rising) prices for beef, depending on consumer willingness to spend on premium cuts or turn to more affordable options. The implications of these global events are reshaping the cost of summer grilling, often in ways that feel out of our control.
