Now in its eighth month, the war with Iran has cost the average American household about $2,000, according to a new analysis by Mark Zandi, chief economist at Moody's Analytics.
Most of the tab is connected to higher energy costs, Zandi said on social media Monday. With gasoline at about $4.35 a gallon, up from below $3 before the start of the war, and diesel at more than $6, near an all-time high, U.S. consumers are spending a lot more at the pump. Add in the higher cost of jet fuel and heating fuel, and households have spent about $1,100 more for energy since the war began — and that tab is increasing by about $50 a week.
Higher interest rates are also costing consumers, with war-driven inflation playing an important role in convincing the Federal Reserve to increase borrowing costs last month. Zandi estimates that higher rates have cost households about $540 each on average.
The cost of military operations is the third major component of the new estimate. According to numbers provided by the Defense Department, the war — which is ultimately paid for by taxpayers, Zandi notes — has cost about $540 per household.