The Iran war has added about $100 billion to Americans’ energy costs, according to an estimate from Brown University. The figure tracks the extra money Americans have paid for gasoline and diesel since the US and Israel launched joint strikes on Iran on February 28.
The war has become politically unpopular in the US The Independent reported that Trump’s handling of the Iran war has faced opposition across the country, with rising fuel prices becoming one of the major concerns for Americans. Gasoline accounts for most of the extra cost. Brown University’s tracker shows that the biggest share of the additional energy bill facing Americans comes from higher gasoline prices While both gasoline and diesel have become more expensive. The national average gasoline price has reached a record for the Labor Day weekend. Trump has also talked about taking control of the Strait of Hormuz. Polling shows that most Americans disapprove of Trump’s handling of the war. Polling data cited in the report indicates that a majority of Americans are unhappy with how Trump has handled the conflict. The conflict has continued beyond that original timeframe, while Americans continue to face higher gasoline and diesel prices. Trump has promised that fuel prices will fall sharply when the war ends. Trump has also repeatedly claimed that the war is effectively over. Brown University’s estimate suggests that the war-related increase in gasoline and diesel prices has already added hundreds of dollars to the typical household’s energy bill. The bigger concern is that the bill is still growing.
The extra cost works out to about $763 per household. The $100 billion figure is still rising. The Iran War Energy Cost Tracker from Brown University’s Watson School of International and Public Affairs estimates that the additional energy cost is increasing by about $1 million every two minutes. The average price stood at about $4.15 a gallon on Monday, marking the first time the national average has crossed $4 during the Labor Day holiday, according to AAA. During an August 14 rally, Trump said that after defeating Iran, he would soon declare the Strait of Hormuz a territory of the United States. For households, the key number is about $763 in extra energy costs on average. With the estimated extra cost rising by about $1 million every two minutes, the total financial impact on American households could continue increasing if fuel prices remain elevated and disruptions around the Strait of Hormuz continue.
Because of the war, brown University’s estimate is based on roughly 131 million households across the US This means the average American household has effectively faced hundreds of dollars in additional gasoline and diesel costs.
Trump told Americans to accept paying more at the pump. During a political rally in Garden City, New York, last month, he said paying “a tiny bit more for your gasoline” was worth the cost of stopping what he described as a very evil country from obtaining a nuclear weapon. Trump had initially said the war could last four to five weeks. He has repeatedly said gasoline prices will “drop like a rock” once the conflict is over. He has said Iran’s military has been destroyed and that the US controls the Strait of Hormuz, even as the higher fuel costs continue to hit American consumers.
The current price is far above the previous Labor Day record. That means drivers are now paying substantially more at the pump than during the previous Labor Day price peak. Some states are facing much higher gasoline prices than the national average. Diesel prices have also surged. Texas has seen the biggest total increase in consumer energy costs.
The earlier record was about $3.82 a gallon in 2012, according to AAA. Brown University’s tracker showed California with an average gasoline price of about $5.86 a gallon on Monday. Hawaii is also seeing gasoline prices above $5 a gallon. The state’s average stood at about $5.39 a gallon, according to Brown University’s tracker. As of Monday morning, diesel was around $5.90 a gallon, according to AAA. Diesel is about 60% more expensive than it was at the same time last year. Residents in Texas have paid about $11 billion in additional gasoline and diesel costs since the beginning of the Iran war, according to Brown University’s tracker.
Because diesel is widely used by trucks and other commercial vehicles, meaning higher diesel costs can also raise transportation and shipping expenses, the increase is particularly important. Diesel reached a record high on Friday and continued climbing.
California is next, with about $8 billion in additional costs. Consumers in the state have collectively paid around $8 billion more for gasoline and diesel since the war began, Brown’s tracker estimates. Florida residents have paid about $5 billion more. About 20% of the world’s oil supply flows through the Strait of Hormuz, a key route for global energy shipments.
Because so much oil normally moves through the Strait of Hormuz, any disruption can put pressure on crude oil supplies and send fuel prices higher. The higher fuel bills are linked to the disruption around the Strait of Hormuz. The disruption has pushed up fears about global oil supplies. President Donald Trump has defended the higher gasoline prices. Trump has argued that Americans should accept somewhat higher fuel costs if it helps prevent Iran from obtaining a nuclear weapon.
The state ranks behind Texas and California in terms of the total additional gasoline and diesel costs paid by consumers since the start of the conflict, according to Brown University. Iran has effectively closed the waterway during the conflict, according to the report.
