Moody's: 'The war in Iran costs each US family an average of 2,000 dollars'

The war in Iran has so far cost each American family an average of about $2,000, according to estimates released by Mark Zandi, chief economist at Moody's Analytics.

“Consider that the overall costs of the war have absorbed about half of the average American family's income increase over the past eight months,” Zandi wrote on X.

“No wonder war is so unpopular.” The conflict, which began in late February, has cost American consumers $265 billion nationwide, Moody's estimates. Zandi pointed to energy prices as the main driver of rising costs.

A gallon of gasoline costs $4.37, up from $2.98 before the conflict. The average cost of diesel "is hovering above $6 and jet fuel has almost doubled. "Overall, it is a figure close to $1,100 per family, paid both at the distributor and through the higher cost of everything transported by road or air," Zandi wrote again. And, with winter approaching, "the decidedly higher cost of fuel for home heating is also driving up costs." Zandi's calculations also take into account the Federal Reserve's decision to raise interest rates. Fixed-rate mortgage rates have risen from a threshold of less than 6% before the war to about 7.5% today. "By our estimates, the increase in rates has cost the economy about $540 per family," the Pentagon's acting finance director wrote in early May. Jules Hurst III, told lawmakers that the cost of the conflict was approaching $29 billion. In late June, the American Enterprise Institute, a conservative think tank, estimated the cost of the operations at $38.6 billion. The Center for Strategic and International Studies, in a late June report, put the cost at around $40 billion. In June, the White House requested $87 billion in additional funds to help cover the costs of replenishing supplies and deploying troops. in the area of responsibility of the United States Central Command (Centcom).

The measure is likely to need Democratic votes to pass the Senate.