U.S. Consumers Face About $100 Billion in Extra Fuel Costs Since Iran Conflict Began
Brown University's Climate Solutions Lab estimates that higher gasoline and diesel prices linked to the Iran war have added roughly $100 billion to American household fuel expenses since late February.
A study by Brown University’s Climate Solutions Lab estimates that the war in Iran has imposed at least $100 billion in additional fuel costs on U.S. consumers since Feb. 28. The analysis attributes $55 billion of the burden to higher gasoline prices and $45 billion to higher diesel prices, based on a comparison of actual 2024 prices with projected prices absent the conflict-driven oil price surge, multiplied by expected fuel consumption.
The researchers calculate the average impact at about $750 per household, noting that families with multiple vehicles or longer commutes would experience larger expenses. > "Energy price shocks function as an economy-wide, unacknowledged tax on American households, with costs comparable to large federal programs and policies," the lab said in a statement.
For perspective, the added cost is similar to the federal government’s annual spending on the Supplemental Nutrition Assistance Program. Since the U.S. and Israel began military actions and Iran restricted flow through the Strait of Hormuz, oil prices have risen, with Brent crude approaching $100 a barrel. Average gasoline prices have climbed from below $3 per gallon before the conflict to about $4.15, according to AAA, while diesel prices have also increased, affecting costs for transportation, agriculture and power generation.
Jeff Colgan, a political science professor at Brown and director of the Climate Solutions Lab, said the group created an Iran War Energy Cost Tracker to illustrate the financial impact on ordinary Americans. > "Once you start to add it up and see what else we could have spent that money on, it really hits a nerve for people," he told a media outlet.
The war has also resulted in 18 service-member deaths and roughly 800 injuries. President Donald Trump, who previously described the operation as a short-term effort, has downplayed the casualties, comparing them to the larger losses in Vietnam. > "I’ll tell you what, a lot of people don’t call it a war. I call it a military conflict because it’s small potatoes for us," he said.
A recent Reuters/Ipsos poll indicated that public support for the war stands at 31%, with President Trump’s overall approval rating at 33%.