100 days into Iran war, Americans face higher prices

One hundred days into the US-Israel war on Iran, Americans are grappling with increased financial pressure, particularly at the gas pump and grocery store. These economic headwinds are compounded by President Donald Trump's existing domestic and foreign policies, including tariffs.

The conflict remains unpopular, with a recent CBS News poll indicating that 66 percent of Americans disapprove of Trump's handling of the war. A comparable ABC News/Washington Post Ipsos poll found 61 percent of respondents believe military action in Iran was a mistake.

US consumers are feeling the financial strain significantly. An analysis by Moody's Analytics estimates that households have spent an average of $750 more on expenses, with energy costs accounting for the largest portion, at $447.19 above the usual spending.

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This is a big economic blow.

"This is a big economic blow," Mark Zandi, chief economist at Moody's Analytics, stated on X, noting that the burden disproportionately affects middle- and lower-income households. Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University, explained that these households spend a larger percentage of their income on essential goods and services like housing and food, which have seen substantial price increases.

Petrol prices surged to $4.22 per gallon on Friday, a stark increase from the average of $2.98 per gallon on February 28, the day of the initial US and Israel strikes. Iran's retaliatory actions, including attacks on energy infrastructure and disruption of traffic through the Strait of Hormuz, have further driven up global oil and gas prices. Overall inflation has risen, with energy prices being the primary driver, contributing to a 5.5 percent increase in energy costs according to the Department of Commerce's Personal Consumption Expenditures report. Inflation has reached 3.8 percent, the highest in three years. Consequently, Americans are adapting by working from home more often or reducing travel plans.

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Folks at middle income or lower income, they spend a bigger proportion of their income on goods and services each month than people at the higher levels of income who can save.