What happened
A new analysis has found that the Iran war has cost the average American household around $2,000. The calculation was made by Mark Zandi, chief economist of Moody's Analytics, who considered factors such as fuel costs, interest rates, and tax dollars allocated to the military.
The main contributor to this cost is higher energy prices, with the price of regular gasoline increasing to $4.37 per gallon, up from just under $3 before the war. Diesel prices are also above $6, and jet fuel has nearly doubled. Additionally, the cost of home heating fuel is expected to rise as winter approaches.
According to Zandi's calculations, energy costs account for the majority of the $2,000 sum, with the total consumer burden of additional gas and diesel costs since the start of the war amounting to over $100 billion. This translates to an individual household bearing around $1,100 of these costs.
The Department of War's costs for the Iran conflict have reached approximately $38 billion as of August 1, and are forecasted to increase by $3 billion per month. This means that the average American taxpaying household is paying an extra $360 per month to cover these costs.
The Iran war has also contributed to inflation, leading to an increase in interest rates. In September, the interest rate was raised for the first time in three years, resulting in an increase of $540 for each household, according to Zandi.
