‘$2,000 Per Household’: How The Iran War Is Driving Up Costs For Americans

The Iran war is putting increasing financial pressure on American households, driving up fuel prices, airfares and mortgage rates while wage growth slows.

The conflict has cost US consumers an estimated $265 billion since it began in late February, equivalent to around $2,000 per household, according to Mark Zandi, chief economist at Moody’s Analytics.

Zandi said many Americans link the Iran war to rising living costs and want the conflict to end.

Wage growth hit a five-year low in September, while inflation-adjusted wages declined in most months since the war began, forcing some households to rely on savings and credit cards.

Disruptions to shipping through the Strait of Hormuz drove up oil and fuel prices.

Although supplies have recovered, energy and transport costs remain high.

Higher energy bills, including petrol and home heating costs, have added an estimated $1,100 to the typical household’s expenses since the war began.

At current prices, the burden is increasing by around $50 a week, Zandi estimated.

US petrol prices have risen to $4.34 a gallon from $2.98 before the war, while higher jet fuel costs have pushed airfares up 23%.

Heating oil prices are expected to rise 21% this winter.

Mortgage rates have reached 7.4%, while higher borrowing costs have added an estimated $360 to household expenses, according to Moody’s Analytics.

The Pentagon estimated the war cost $45.1 billion by September, excluding full repair costs for damaged US facilities.

Ahead of the midterms, just 27% of Americans approve of Trump’s handling of the economy, while 28% rate economic conditions as good.

The White House has defended Trump’s Iran policy and challenged economist Mark Zandi’s forecasts.

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