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Retail Price Impacts From the Iran War Are Uneven but Add up for U.S. Households Before Midterms
Mark Zandi said the war has cost the average U.S. household nearly $2,000, as higher fuel prices lift airfares, delivery charges and some retail prices.
More than seven months into the U.S. war with Iran, sharply higher fuel prices are straining American households, costing the average family nearly $2,000, according to Moody's Analytics chief economist Mark Zandi.
AAA reported that the national average for gasoline reached $4.33 a gallon on Friday, 45% above prewar levels, while diesel jumped 68% to $6.33, complicating shipping logistics.
Airlines raised fares roughly 22% in September, while footwear prices rose 3.4% annually; FDRA President and CEO Matt Priest warned that "there is a limit to how much additional cost businesses can absorb."
Treasury Secretary Scott Bessent announced Operation Economic Outcast, a set of secondary sanctions targeting groups and individuals doing business with Iran, as the conflict disrupts regional oil shipments.
Shipping constraints through the Strait of Hormuz prolong uncertainty over energy supplies, with the Energy Information Administration expecting winter heating costs to rise 21% for households relying on heating oil.