Iran War Costs U.S. Households Over $2,000, Study Finds
New analysis reveals the Iran war has cost American households more than $2,000, with energy and military expenses driving the financial burden.
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The Iran war — among the most unpopular conflicts in modern U.S. history — has reportedly cost the average American household approximately $2,000, according to a new analysis. Mark Zandi, the chief economist of financial intelligence firm Moody’s Analytics, calculated the past eight months of war cost the American household this amount by analyzing fuel costs, interest rates, and tax dollars allotted towards the military, according to his Tuesday post to X.
Higher energy prices are contributing most to the costs. A gallon of regular goes for $4.37, up from just under $3 before the war. Diesel is above $6, and jet fuel has nearly doubled. As winter approaches, the much higher price of home heating fuel is also adding to the costs.
Energy costs contribute to the vast majority of this sum. The total consumer burden of additional gas and diesel costs since the onset of the war has amounted to over $100 billion, per a study from Brown University’s Climate Solutions Lab. The individual household bears $1,100 of these costs, according to Zandi’s calculations. In addition to car fuel, these costs also factor in home heating bills and the fuel of commercial vessels such as long-haul trucks and cargo planes.
The Department of War’s costs of the Iran conflict amount to approximately $38 billion as of Aug 1, per the Congressional Budget Office. This price tag is forecasted to increase $3 billion per month, Reuters reported in September. This amounts to the American taxpaying household paying an extra $360 per month to cover these costs, according to Zandi.
The Iran war has also contributed to inflation, thus prompting the Federal Reserve to increase interest rates. In September, the interest rate was raised for the first time in three years, NPR reported. The consequence of this is an increase in $540 for each household, per Zandi.
The department did not respond to the Daily Caller News Foundation’s request for comment.
Source: Daily Caller
