Americans have made clear since President Donald Trump joined Israel in beginning an unprovoked war on Iran that they view the conflict-of-choice as damaging to their financial well-being—and that they blame the president for the higher cost of fuel since the war started in February.
On Friday, Moody’s Analytics put an exact number on the heightened financial anxiety families across the country have been feeling over the past three months as Iran’s closure of the Strait of Hormuz has sent fuel prices soaring: $447.19.
That’s how much the average US household has had to additionally spend on fuel-related expenses since Trump and Israeli Prime Minister Benjamin Netanyanu launched their attack on February 28, Moody’s told CNBC.
Altogether, Americans have spent a total of nearly $60 billion on gas, airline fares, and other related costs as the strait, a key shipping route for oil, has remained effectively closed.
According to AAA, the average price of a gallon of regular gas stands at $4.39—up close to 50% since early March. Diesel now costs $5.52 per gallon, forcing consumers to pay $20 billion more in additional expenses on groceries and other goods.
“The economy isn’t just soft, it’s struggling,” Mark Zandi, Moody’s chief economist, said Thursday. “The Iran war needs to end, and the Strait of Hormuz needs to be reopened soon, or recession will become more likely than not.”
As CNBC reported Friday, “higher energy costs can force consumers to raid their savings and lean more on debt to cover expenses.”
Trump flatly said earlier this month that he doesn’t consider Americans’ financial situation “even a little bit” when it comes to the war on Iran, while National Economic Council Director Kevin Hassett posited earlier this week that Americans are “spending more money” not because higher prices are forcing them to but because they’re “very, very optimistic about the state of the economy.” He also bragged recently that “credit card spending is through the roof”—a sign several observers took not as a positive omen for the economy but as a sign that families are being forced to take on debt to pay for gas and other essentials.
Zandi provided a reality check Friday.
“Unless the war ends soon, financially pressed consumers will have no option but to turn more cautious in their spending, threatening the already soft economy,” he told CNBC, warning that families could end up spending nearly $2,000 extra on fuel-related costs if the war continues reaches the one-year mark.
Hellbound and Down 