US households face rising costs from seven-month Iran war

Summarised from 2 outlets · Updated 17 Oct, 09:02 · Archive

More than seven months into the war with Iran, higher fuel prices are increasing costs for American households ahead of midterm elections.

More than seven months into the U.S. war with Iran, sharply higher fuel prices are making it more expensive to drive, fly and buy some goods. Motorists and airline passengers have borne the clearest consequences as fighting disrupts Middle East oil shipments. Some companies have raised delivery charges or prices on selected products, though the higher cost of making and moving goods has not yet translated into across-the-board price increases at stores.

Mark Zandi, chief economist at Moody's Analytics, estimated that the war has cost the average U.S. household the equivalent of almost $2,000, including $1,100 in higher energy prices, $540 in higher interest rates and $360 in military costs. The energy portion is growing by $50 a week at current fuel prices, he said.

Before the war, regular gasoline averaged $2.98 a gallon nationwide and diesel $3.76. Gas has since peaked at $4.56 in May, whilst diesel reached a record $6.53 in September. Shoppers may not be spared from further price rises indefinitely, as a September jump in wholesale prices suggests some businesses may eventually charge more if fuel prices remain elevated.

How it is being reported

• Retail price impacts from the Iran war are uneven but add up for US households before midtermsHigh fuel prices are making it more expensive to drive, fly and buy some goods more than seven months into the U.S.-Iran war.Clickorlando · 17 Oct, 08:24
• Retail price impacts from the Iran war are uneven but add up for US households before midtermsHigh fuel prices are making it more expensive to drive, fly and buy some goods more than seven months into the U.S.-Iran war.News4Jax · 17 Oct, 08:24

In this story: United States · Iran · Middle East · Moody's Analytics · Mark Zandi

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