The economic repercussions are extending far beyond military expenditure, as disruptions to global energy supplies have driven up gasoline and diesel prices, increasing the cost of transportation, food and other essential goods.

US diesel prices reached a record $6.53 per gallon in September, prompting several states to introduce emergency measures to contain fuel costs, including suspending fuel taxes and relaxing restrictions on fuel supplies, Reuters reported on September 29.

Meanwhile, American consumer confidence has fallen to its lowest level in more than a decade, with the Conference Board’s index dropping to 81.9 in September from 88.6 in August, reflecting mounting concerns over inflation, stagnant wages and the economic consequences of the war, according to an Associated Press report.

The CBO has warned that the conflict could add approximately 0.5 percentage points to US inflation in the first quarter of 2027, largely due to energy supply disruptions affecting the Strait of Hormuz and the Red Sea.

The financial burden is also mounting on US taxpayers, as the CBO estimates that Washington has spent $38 billion on the war through August 1, primarily on replacing depleted munitions, including missile-defense interceptors and cruise missiles. Replenishing the depleted weapons stockpiles could take five years or longer, while continued military operations are expected to further increase federal spending.

The growing economic strain has intensified criticism of the administration’s priorities, with Democratic lawmakers arguing that billions of dollars committed to the war could instead have been directed toward addressing the rising cost of living and supporting American households.

With fuel prices remaining elevated, consumer confidence deteriorating and the war’s duration uncertain, the economic consequences of the US-Israeli military aggression against Iran continue to weigh on American households, while the eventual financial and humanitarian costs remains unclear.