Trump’s Iran war has cost Americans $100 billion, with households paying on two fronts
Translated from Croatian and summarized by DistantNews. Read the original for the full story.
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- The six-month conflict with Iran has disrupted energy supplies through the Strait of Hormuz, driving diesel prices to record levels and increasing transport, food and travel costs in the United States.
- Direct costs to U.S. taxpayers have already exceeded $100 billion, while one analysis estimated the war had cost American households about $1,000 each.
- Economists cited in the report do not generally expect a recession, but they warn that inflation could remain high and keep Federal Reserve interest rates elevated.
Americans are paying for the war with Iran twice: at the fuel pump and through the federal budget. After six months of fighting, the conflict has pushed up everyday costs while direct expenses for U.S. taxpayers have passed $100 billion, according to estimates cited in the report.
The immediate pressure comes from energy. Fighting and a blockade in the Strait of Hormuz have seriously disrupted the important supply route, sending diesel prices to record levels. Bob McNally, a former energy adviser to President George W. Bush, attributed the higher costs to the war and the disruption in the strait.
Both trucks need generators to keep everything cold. And they are not exactly fuel-efficient. I have to pass some of the additional costs on to customers.
The impact extends well beyond gasoline. More expensive diesel raises the cost of freight, which feeds into prices for goods, food and travel. Aj Navarro, who operates two food trucks in Sacramento, said both vehicles need generators to keep supplies cold. “Both trucks need generators to keep everything cold. And they are not exactly fuel-efficient. I have to pass some of the additional costs on to customers.”
High prices are the result of the war with Iran and disruptions in the Strait of Hormuz.
Small businesses are feeling the strain, while the broader U.S. economy has so far remained surprisingly stable. Most economists do not expect a recession, and unemployment remains low. But Aleema Croft of RBC Capital Markets said the diesel market was especially worrying because prices had reached record levels.
The government’s bill continues to grow. Gabe Murphy of Taxpayers for Common Sense said the most comprehensive estimates put direct taxpayer costs above $100 billion by the end of June, with the total rising since then. Another analysis estimated the cost to American families at about $1,000 per household.
The diesel market is especially worrying. Diesel prices are at record levels.
Much of the spending is being financed through borrowing, which will increase the government’s interest burden in coming years. The report says the military industry and parts of the energy sector are benefiting, while consumers face a longer period of high inflation and potentially high Federal Reserve interest rates. Sean Bennett, filling up an older car, said buying a new vehicle with loan payments, insurance and running costs would be difficult.
According to the most comprehensive estimates, direct costs for taxpayers have already exceeded $100 billion.
About this summary
Originally published by Večernji List in Croatian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.
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