Economist estimates Iran war cost at $1,100 per U.S. household
7 reported1 unconfirmed
Mark Zandi, chief economist at Moody’s Analytics, has estimated that the ongoing conflict between the U.S. and Iran has cost the average American household approximately $1,100 so far. In an interview with NPR, Zandi explained that the total cost of the war amounts to nearly $150 billion, spread across 133 million U.S. households. The largest contributor to household costs is higher gasoline prices, followed by increased diesel and jet fuel costs that raise prices for groceries, shipping, and airline tickets. Zandi also noted that higher interest rates and military spending factor into the total. He said lower- and middle-income Americans are most affected because they spend a larger share of their budget on energy and gasoline, and that costs vary by region, with people in the southeastern U.S. driving longer distances. Zandi stated that so far, households have responded by cutting back on savings rather than spending, but he predicted that if the war continues, they may need to reduce spending.
What’s reported
Mark Zandi, chief economist at Moody’s Analytics, estimated the Iran war has cost the typical U.S. household about $1,100.
The total cost is nearly $150 billion, spread across 133 million American households.
The biggest cost driver is higher gasoline prices, followed by diesel and jet fuel costs.
Higher interest rates and military spending also contribute to the total.
Lower- and middle-income Americans are most affected because they spend a higher share of their budget on energy.
Costs vary by region; people in the southeastern U.S. tend to drive longer distances.
So far, households have cut back on savings rather than spending, but may reduce spending if the war continues.
Open questions
The article does not specify the exact duration of the war or the precise breakdown of costs beyond energy, interest rates, and military spending.
Key figures
Mark Zandi, chief economist at Moody’s Analytics
A Martinez, NPR host
Sources: NPR
