According to an analysis by Moody's, the conflict involving Iran has cost American consumers $100 billion so far, equating to roughly $750 per household.
Mark Zandi, the chief economist at Moody's, stated that these costs passed on to families result from increased military spending and higher oil prices due to supply disruptions in the Middle East.
Since attacks were launched against Iran by the US and Israel, the price of Brent crude has repeatedly surpassed $110 per barrel.
The cost of military operations is significant: in late April, Jules Hurst of the Pentagon informed the US House Armed Services Committee that the conflict has already cost $25 billion, with the majority spent on munitions.
In a recent article, Zandi wrote that the economic impact has so far been offset by deficit-funded consumer tax cuts. However, "as of May 16, the larger tax refunds Americans received this year are no longer sufficient to offset the rise in gasoline, diesel, and jet fuel prices caused by the war."
Zandi added that the current financial strain "is mounting rapidly," and is particularly acute for low- and middle-income families who were already financially stretched.
"With the savings rate at a historic low, unless the war ends soon and energy prices decline, they have no choice but to curb spending, which will further weaken an already soft economy."
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