Kathrine Frich
Taxpayers are footing the direct bill for the military campaign.
When a massive conflict breaks out halfway across the globe, the financial fallout hits closer to home. You might not see the battles, but you definitely feel the impact every time you pull out your wallet. Everyday living expenses are quietly creeping up.
The hidden toll
The ongoing war with Iran is taking a massive bite out of American bank accounts. President Donald Trump launched the conflict in late February, and the economic ripple effects are hitting regular households hard.
An average family has already lost roughly $1,000 to rising daily costs. Mark Zandi serves as the chief economist for Moody’s Analytics. He recently broke down these painful new numbers during a comprehensive interview with CBS News cited by the Daily Express.
The biggest financial hit happens right at the gas pump. Zandi estimates that Americans have spent an extra $300 just to keep their cars running since the fighting began.
Fuel prices spiked drastically in the spring. Gas hit a peak of $4.56 per gallon in late May before finally dropping slightly earlier this month.
Groceries and flights
Those high fuel costs do not just affect personal driving. Transporting goods requires diesel, which immediately drives up the retail price of everything else.
Shoppers are feeling the squeeze in the checkout aisle. The economist calculated that the average household is paying an extra $200 for basic groceries.
Vacation plans are getting more expensive. Jet fuel prices have forced airlines to raise ticket rates, costing families an additional $100 in travel fees.
Borrowing money is harder now, too. The war caused inflation to spike to a three-year high. This forced the Federal Reserve to pause planned rate cuts, adding about $150 to a typical family budget.
A massive military bill
Taxpayers are footing the direct bill for the military campaign. Operations cost the average home around $250, as the government spends $50 million every single day to wage the war.
Some officials told CBS News the total operation has already reached a staggering $50 billion. Meanwhile, a Pentagon representative previously placed the cost of Operation Epic Fury at $25 billion, a figure that completely ignored damaged military equipment.
The financial bleeding is far from over. Zandi warned that his numbers might actually be too low.
“My estimate that the Iran war has cost the typical American household $1,000 and counting is, if anything, conservative,” Zandi wrote. He stressed that the true cost will likely climb significantly.
Sources: CBS News, Express.
