{"id":16977,"date":"2026-10-14T13:10:58","date_gmt":"2026-10-14T10:10:58","guid":{"rendered":""},"modified":"2026-10-14T13:10:58","modified_gmt":"2026-10-14T10:10:58","slug":"iran-war-costs-us-economy-265-billion-as-household-burden-mounts","status":"publish","type":"post","link":"https:\/\/harici.com.tr\/en\/iran-war-costs-us-economy-265-billion-as-household-burden-mounts\/","title":{"rendered":"Iran war costs US economy $265 billion as household burden mounts"},"content":{"rendered":"

The economic toll of the conflict on the US has reached $265 billion in the roughly eight months since the start of joint US and Israeli strikes against Iran.<\/p>\n

According to calculations<\/a><\/span> by Moody’s Analytics Chief Economist Mark Zandi, this amount imposes an additional burden of approximately $2,000 on the budget of an average American family.<\/p>\n

Sharing data on his X account on Tuesday, Zandi noted that the cost per household since the war began stands at about $2,000, with nationwide economic losses reaching $265 billion.<\/p>\n

This estimate is seven times higher than the direct military spending figure reported to Congress by Secretary of War Pete Hegseth, which covers the period between the start of the strikes on 28 February and the end of July.<\/p>\n

While Hegseth’s official figures cover only direct military operations, the conflict’s impact on global markets and oil prices is driving up inflation and day-to-day living costs, deepening the real burden on household budgets.<\/p>\n

Fuel and heating costs strain budgets<\/strong><\/p>\n

Energy items account for the largest share of the additional expenses facing American households. The surge in fuel, home heating, and transport costs has generated an extra bill of about $1,100 per family.<\/p>\n

Zandi noted that the price of regular petrol, which hovered just below $3 per gallon before the war, has risen to $4.37, while diesel has exceeded $6 and jet fuel has nearly doubled.<\/p>\n

Pointing out that a marked rise in residential heating fuel costs is driving up spending as winter approaches, Zandi said current price levels continue to add roughly $50 a week to family budgets.<\/p>\n

Researchers at Brown University’s Watson Institute for International and Public Affairs are also tracking the impact of rising fuel prices on consumers.<\/p>\n

According to data from the institute, US consumers have paid an extra $133.3 billion for fuel products since 28 February.<\/p>\n

During this period, petrol prices rose by more than 46% and diesel climbed by over 70%. Of this additional burden borne by consumers, $73.5 billion stemmed from petrol and $59.8 billion from diesel. This calculation translates into an extra cost of $1,017.76 per household nationwide.<\/p>\n

Loan interest rates and operational outlays inflate the bill<\/strong><\/p>\n

Another decisive factor in the economic picture has been the rise in interest rates.<\/p>\n

Zandi reported that climbing interest rates have created a cost of approximately $540 per household.<\/p>\n

Fixed-rate home mortgage rates, which stood below 6% before the war, have climbed to roughly 7.5%, Zandi said, adding that long-term rates have also increased substantially.<\/p>\n

Direct military operations, meanwhile, represent a cost of $360 per household based on Pentagon data.<\/p>\n

However, experts point out that repair, maintenance, and equipment replenishment expenses are excluded from the published figures, meaning actual military spending on the ground could exceed Pentagon estimates.<\/p>\n

Linda Bilmes, a war budget specialist who teaches public policy at Harvard Kennedy School, said she is certain the conflict’s bill will reach $1 trillion, adding, “Maybe we’re already there.”<\/p>\n

Trump defends spending as public support drops<\/strong><\/p>\n

The mounting economic strain is fuelling backlash against the military campaign and US President Donald Trump’s handling of the process.<\/p>\n

A Pew Research Centre survey conducted on 28 September-4 October among 5,062 adults revealed that 65% of Americans disapprove of the way Trump is handling the Iran strikes.<\/p>\n

The proportion of those who consider the use of military force justified dropped four percentage points compared with March, falling to 34%.<\/p>\n

Emphasizing that the total cost has wiped out roughly half of the average American household’s income gains over the past eight months, Zandi said it is natural for public support for the war to remain so low.<\/p>\n

According to figures shared by pollster Nate Silver, Trump’s net approval rating has tumbled to an all-time low of minus 23.5 points.<\/p>\n

Defending the military intervention against Iran, Trump described the costs as “a small price to pay to keep our country and the world safe.”<\/p>\n

With the surging cost of living piling pressure on Republicans ahead of the November midterm elections, Trump announced last month that he would provide a $5,000 cash payment to every adult in the country if his party maintains its majorities in both chambers of Congress.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The economic toll of the conflict on the US has reached $265 billion in the roughly eight months since the start of joint US and Israeli strikes against Iran. According to calculations by Moody’s Analytics Chief Economist Mark Zandi, this amount imposes an additional burden of approximately $2,000 on the budget of an average American […]<\/p>\n","protected":false},"author":1,"featured_media":16978,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[176],"tags":[22561,42,16948,319,17039,22563,503,22567,917,4051,288,812,22564,14076,11843,6701,19458,20596,22565,823,3667,1128,22566,821,22562],"class_list":["post-16977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-america","tag-brown-university","tag-congress","tag-diesel","tag-donald-trump","tag-fuel-prices","tag-harvard-kennedy-school","tag-headline","tag-heating-fuel","tag-inflation","tag-interest-rates","tag-iran","tag-israel","tag-linda-bilmes","tag-mark-zandi","tag-midterm-elections","tag-military-spending","tag-moodys-analytics","tag-mortgage-rates","tag-nate-silver","tag-pentagon","tag-pete-hegseth","tag-petrol","tag-pew-research-centre","tag-us","tag-watson-institute-for-international-and-public-affairs"],"yoast_head":"\nIran war costs US economy $265 billion as household burden mounts - 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