The United States and Iran are still moving forward with ceasefire negotiations, and shipping arrangements are one of the focus areas. Citing the comment of the chief economist, Mark Zandy, of Moody, the media argued that the cost impact of the conflict on American households continued, despite the fact that oil prices had fallen from the height of war.

Gas prices are still higher than a year ago.

The Strait of Hormuz has been blocked for a long time since the outbreak of the conflict in February, with a marked rise in international oil prices and its transmission to retail oil prices in the United States. It was reported that the national average price of gasoline in the United States is currently about $3.84 per gallon, about 23 per cent higher than a year ago and nearly four years higher.

Zandi estimates that higher gasoline prices alone have allowed each United States household to spend about $300 extra. This is the most direct expenditure for households that rely on private car commuting, child delivery and daily procurement.

Transport, military and interest rates continue to raise bills

In Zandi ' s view, the costs of war are not only reflected in gas stations. The increase in the cost of fuel by airlines resulted in an average additional expenditure of approximately $100. The higher price of diesel also pushed up the cost of trucking and agricultural machinery, further transmitting the prices of food and daily goods, creating an additional burden on households of approximately $200.

  • Financial expenditures related to military operations, equivalent to approximately $250 per household
  • Increased borrowing costs due to the expected upward movement of interest rates by approximately $150

Zandi claims that after the war pushed inflationary pressure, the market's expectations of the Fed's interest rate decline over the course of the year have diminished significantly, and some analysts have even turned to forecast interest rate hikes. The pressure on credit cards, car loans and mortgages to pay has therefore risen.

Total cost or still growing

Zandy believes that, at the current calibre, $1,000 per household remains conservative. Cost increases such as fertilizers and helium may continue to affect food and semiconductor prices. This number has been further improved compared to the $750 per household estimate he gave a month ago.

The report also mentioned that the United States Department of Defense had requested an additional $80 billion in June to cover war-related expenditures in Iran. This does not include follow-up costs for the rehabilitation of United States military facilities in the Middle East, the replenishment of ammunition and the replacement of damaged military aircraft.

Linda Bilms, a public policy expert at the Kennedy College at Harvard University, gave a higher estimate. In her view, the total cost of the war to the United States economy could exceed $1 trillion if long-term projects such as infrastructure rehabilitation, stock-building and expenditure on disabled veterans were included. Based on approximately 134 million households in the United States, the equivalent is close to $7,500 per household.