The credit agency Moody’s has calculated that the war against Iran has cost each American household $750.
Moody’s chief economist Mark Zandi said that in under three months of war, the cost of the war against Iran has already offset the additional tax breaks Americans received under President Donald Trump’s tax cuts. “As of May 16th, the bigger tax refunds Americans have received this year no longer cover the higher costs of gasoline, diesel, and jet fuel caused by the war,” he wrote on X.
While the Pentagon has claimed the cost of the war is around $25 billion, Moody’s calculates the costs to Americans are $750 per household or $100 billion in total.
Zandi said the economic impact will primarily hit middle- and lower-class Americans, who will be forced to change their spending habits. “With the saving rate about as low as it ever goes, unless the war ends soon and energy prices come down, they will have little choice but to rein in their spending, weighing further on the already sagging economy,” he explained.
Israel and the US attacked Iran amid negotiations earlier this year. While initially predicting a quick victory, Trump has been unable to force Iran to comply with his demands. Additionally, Tehran has attacked oil assets in Gulf Arab states and shut down the Strait of Hormuz.
The President has claimed that he is willing to let the war drag on and is not concerned about Americans’ financial situation.
