Nearly $2,000. By my calculation, that is what the Iran war has cost the average American household since the war began nearly eight months ago. Nationwide, that adds up to $265 billion.
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Higher energy prices are contributing most to the costs. A gallon of regular goes for $4.37, up from just under $3 before the war. Diesel is above $6, and jet fuel has nearly doubled. As winter approaches, the much higher price of home heating fuel is also adding to the costs.
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Altogether, that comes to close to $1,100 per household, paid at the pump and in the higher cost of everything that moves by truck or plane. And the energy tab continues to increase by about $50 a week at today’s fuel prices.

Oct 12, 2026 · 2:02 PM UTC

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Then there are the higher interest rates. The war’s inflation contributed to the Fed’s decision last month to raise rates and signal that more rate increases are coming. Long-term rates are also up a lot – fixed mortgage rates have climbed from below 6% before the war to 7.5%. By our reckoning, the higher rates have cost the economy about $540 per household.
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The military costs also continue to mount. Based on what the Pentagon has acknowledged, these costs come to $360 per household.
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Consider that the war’s costs taken together have absorbed about half the average American household’s income gain over the past eight months. No wonder the war is so unpopular.
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Sort replies: Relevant Recent Liked
Replying to @Markzandi
I think interest number should be higher as cost to finance u.S. debt has gone up by 30% and we have $40T in debt, $10T of which was refinanced this year at higher rates. How is that number calculated? Is that assuming only the cost for this year?
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But it is so worth it!
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Replying to @Markzandi
you cant fix YOU, I mean STUPID.
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