War on Iran Costs U.S. Taxpayers Over $130 Billion and Triggers Global Economic Strain
The conflict between the United States, Israel and Iran has resulted in more than 13 U.S. fatalities, over $130 billion in U.S. consumer costs, higher energy prices and a slowdown in global growth.
The United States and Israel’s three-month war with Iran has already claimed 13 U.S. service members and more than 3,300 Iranian lives, according to state media, while civilian deaths have been reported in Lebanon, Israel and several Gulf states.
Moody’s Analytics estimates the conflict has cost U.S. consumers and taxpayers roughly $132 billion so far, a figure that continues to rise. Higher gasoline prices – which peaked at $4.56 per gallon after the Strait of Hormuz was effectively shut – added more than $500 million a day to U.S. fuel expenses at the height of the crisis. Diesel prices also surged, reaching $5.69 per gallon in early April, and airline tickets rose about 27 % due to increased jet-fuel costs.
The war’s impact extended to other commodities; a survey by the American Farm Bureau Federation found fertilizer prices up 47 %, leaving roughly 70 % of U.S. farmers unable to purchase the full amount they need. Mortgage rates climbed as well, with the average 30-year loan rate hitting 6.52 % and adding roughly $110 to the monthly payment on a $400,000 home.
Globally, the World Bank lowered its 2026 growth forecast to 2.5 %, the weakest since the pandemic, and projected Gulf economies to expand only 1.3 % this year, down from 4.5 % the previous year. The International Monetary Fund cut its outlook for Qatar by almost 16 percentage points after Iranian attacks damaged its LNG export capacity. Oil production in the Middle East fell by more than 11 million barrels per day in May compared with pre-conflict levels, while Saudi Aramco reported a 26 % rise in earnings for the first quarter of 2026.
A United Nations assessment warned that perceptions of safety in Gulf states could remain altered for years, affecting tourism and investment. The conflict also disrupted supply chains for semiconductors, fertilizers and other goods, contributing to higher global poverty and hunger, according to UN agencies.
Pentagon comptroller Jules Hurst told a Senate committee that operational costs for the war total $29 billion, a $4 billion increase from earlier estimates to cover equipment repair and replacement. He noted that repair costs for damaged bases in Kuwait and Bahrain have not yet been quantified.
Political polling shows President Trump’s net approval fell from –15 percentage points in late February to –22 points by the end of May, reflecting growing public disapproval of the war.