The Iran war cost Americans an additional $41 billion in fuel expenses.

The U.S. war against Iran is imposing a heavy economic cost on every ordinary consumer.

According to the latest research by Brown University, since the outbreak of the Trump-Iran war, U.S. consumers have spent more than $41.5 billion in extra fuel costs, averaging about $316 per household. Meanwhile, the rise in U.S. gasoline and diesel prices is the highest among the G7 nations, with inflation pressures spreading to food, air tickets, and other sectors, becoming an increasingly severe political challenge for Trump.

In response to the energy shock, the Trump administration has used a record amount of strategic oil reserves, relaxed fuel transportation and environmental regulations, and proposed suspending the federal fuel tax. However, Trump himself stated clearly last week that domestic inflation pressures will not "even a little bit" affect his decision to end the war.

$41.5 Billion: Equivalent to Renovating America’s Bridge Network

Research from Brown University's Watson Institute for International and Public Affairs shows that as of last Sunday, the Iran war has resulted in an accumulated extra fuel expenditure of $41.5 billion for U.S. consumers. This figure exceeds the entire $40 billion budget for the federal bridge investment plan, is higher than the $31.5 billion required to completely overhaul the U.S. air traffic control system, and is more than twice the $18.9 billion federal electric vehicle charging infrastructure project that the Biden administration scrapped.

"As a nation, we are spending such huge amounts on extra fuel costs, money that could have been used to improve America’s transportation infrastructure—which frankly, needs attention," said Jeff Colgan, professor of political science at Brown University.

Since the outbreak of the Iran war at the end of February this year, the Strait of Hormuz—which supplies about one-fifth of global oil—has remained largely closed. Tight supply has pushed the international benchmark Brent crude price up more than 50% to around $110 per barrel.

According to the American Automobile Association (AAA), retail gasoline prices in the U.S. have risen 51% to $4.51 per gallon, while diesel prices have soared 54% to $5.65 per gallon, near historic highs. Both increases are the highest among G7 countries.

Inflation Heats Up, Bond Market Under Pressure

Rising energy costs have continued to transmit to the overall economy. In April this year, the U.S. Consumer Price Index recorded the fastest growth in three years, with wholesale price increases also the highest since 2022, comparable to the inflation shocks at the onset of the Russia-Ukraine conflict.

Inflation pressure is simultaneously pushing up debt costs. The yield on U.S. Treasury's 30-year bonds issued last week hit 5% for the first time since 2007, reflecting investors' concerns over persistently high inflation.

Even though high energy prices have provoked widespread public discontent, the Trump administration’s policy response remains limited. Government measures include the record release of strategic oil reserves, easing of environmental regulations on fuel, and the proposal to suspend federal gasoline and diesel taxes.

However, Trump's recent statements have shocked the market. He told the media: "I won’t consider Americans’ financial situations. I don’t consider anyone’s. I care about only one thing—we cannot allow Iran to have nuclear weapons. That’s all."

Polls show that this war is unpopular among U.S. voters, and has hurt Trump’s approval ratings, which are now near historic lows. A recent Financial Times poll found that 58% of Americans are dissatisfied with Trump's handling of living cost issues.

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