President Donald Trump's military action in Iran is now carrying a measurable price tag for American households, according to a new study from Moody's Analytics, which estimates that the conflict has cost US households a combined $100 billion (£79 billion) since it began in February, with much of the burden linked to rising energy prices following the closure of the Strait of Hormuz.
The disruption has pushed oil prices sharply higher and filtered through to everyday costs, particularly at the petrol pump.
While the White House has sought to minimise concerns about the economic impact, new polling suggests many Americans are already feeling squeezed by rising living costs.
Moody's Analytics chief economist Mark Zandi has warned that the pressure is mounting, especially for middle and lower-income families who have less room in their budgets to absorb higher expenses.
The findings offer one of the clearest pictures yet of how the conflict is affecting households far beyond the battlefield.
How Much The Iran Conflict Has Cost American Households
According to Moody's Analytics, the overall cost of the conflict to US households has reached an estimated $100 billion (£79 billion). The analysis suggests that translates to roughly $750 (£592.50) per household since the military action began in February.
A major factor behind the financial hit has been the increase in energy costs. The study points to the closure of the Strait of Hormuz, a critical shipping route, as a key reason behind a 35 per cent rise in oil prices following the start of the conflict.
The increase has been reflected in fuel costs across the country. Data from AAA shows that the national average price for regular gasoline currently stands at $4.29 (£3.39) per gallon. Although prices have eased from peaks above $4.50 (£3.56) per gallon, they remain elevated. In six states, fuel prices continue to exceed $5 (£3.95) per gallon after shipping disruptions in the region affected energy markets.
Despite concerns about the economic impact, Trump has sought to downplay the issue and has described the price increases as 'peanuts' when compared with the threat posed by a nuclear-armed Iran.
However, public sentiment appears to reveal a different story. A May survey conducted by Public First for Politico found that 53 per cent of Americans believe the cost of living is the worst they can remember. That figure marks an increase from 46 per cent recorded in November, suggesting that financial pressures are becoming a growing concern for many households.
The findings indicate that while debates over the conflict often focus on foreign policy and national security, its economic consequences are increasingly being felt at home through higher everyday costs.
Why Economists Say The Financial Pressure Is Growing
The economic effects of the conflict have been highlighted by Moody's Analytics chief economist Mark Zandi, who has repeatedly warned that the burden on households is becoming harder to manage.
In a statement posted on X, Zandi described the conflict as a 'big economic blow' for Americans. He noted that earlier in the year, larger tax refunds had helped offset some of the impact from higher fuel costs. That cushion, however, has now disappeared.
$100 billion. That’s our estimate of the cost of the Iran War to American households. That’s nearly $750 per household. This includes the additional U.S. military costs and the higher energy and other prices resulting from the war. This is a big economic blow, but… pic.twitter.com/YL2uvGcIfy
— Mark Zandi (@Markzandi) June 1, 2026
'As of May 16, 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,' Zandi wrote. 'The financial pressure is thus mounting quickly, particularly on already hard-pressed middle and lower-income households.'
Recent government data appears to support those concerns. Figures from the Bureau of Economic Analysis showed that the personal savings rate fell to 2.6 per cent in April, down from 5.8 per cent a year earlier. The decline suggests that households are putting away less money as rising daily expenses consume a larger share of their budgets.
Economists are particularly concerned about what could happen if energy prices remain elevated for an extended period. Lower savings rates leave families with fewer financial buffers to absorb additional costs, making them more vulnerable to future price increases.
Zandi warned that the situation could eventually spill over into the wider economy if households are forced to cut back on spending. '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 wrote.
The Moody's analysis, therefore, paints a picture of a conflict whose effects are extending beyond international affairs and into household finances. With fuel costs still elevated and savings rates falling, economists say many Americans are facing growing financial strain as the economic consequences of the Iran conflict continue to unfold.
