The Iran war has cost U.S. households an estimated $100 billion so far, according to Moody’s Analytics. Chief economist Mark Zandi calculated that the average cost per household is about $750, driven by increased military spending and higher oil prices following the conflict escalation. This figure reflects the economic impact since the U.S. and Israel launched military action against Iran, which triggered a series of attacks across the Middle East.
The rise in oil prices has been significant, with Brent crude topping $110 a barrel multiple times since the conflict began. The Pentagon reported $25 billion in war costs by late April, mostly spent on munitions, according to testimony by Jules Hurst to the House Armed Services Committee. While deficit-financed tax cuts initially offset some of the economic strain, Zandi noted that by mid-May, the larger tax refunds no longer compensated for higher fuel costs, including gasoline, diesel, and jet fuel.
This economic burden is supported by analyses from major financial institutions. Goldman Sachs and Morgan Stanley both assessed the impact of the One Big Beautiful Bill Act—the largest tax refund season in U.S. history—against the backdrop of rising fuel prices and military expenditures. Goldman Sachs quantified the higher gasoline prices alone as a $140 billion annualized economic headwind as of mid-April, underscoring the broader financial strain on U.S. consumers.
The ongoing conflict continues to affect U.S. economic conditions, with military spending and oil price volatility remaining key factors. The Pentagon’s April report and Moody’s latest analysis provide concrete measures of the war’s financial toll on American households.