Iran War Costs Hit $29 Billion; Trump Says Economic Impact Irrelevant in Negotiations
The U.S. Iran war has cost $29 billion so far, surpassing earlier Pentagon estimates, with diesel prices up 60% annually causing food cost inflation. President Trump stated he does not consider American economic hardship when negotiating with Iran, raising concerns about the conflict's long-term economic toll.
Economic Toll Mounting
The Iran war has cost the US $29 billion so far— an estimate that's higher than the $25 billion figure the Pentagon provided to Congress two weeks ago. An expert from Harvard Kennedy School said in April the conflict could cost US taxpayers $1 trillion.
Diesel Prices and Domestic Impact
The national average for a gallon of diesel has jumped 60% over the past year to $5.66 a gallon, approaching the all-time high of $5.82 a gallon set in June 2022. Surging diesel prices may already be increasing consumer food prices by raising costs for farmers growing crops and to transport food to the grocery store.
Global Oil Concerns
Global oil reserves are rapidly shrinking as a result of the supply disruption caused by the Iran war, threatening future oil price surges, the International Energy Agency (IEA) has warned. The US Department of Energy now says oil prices will likely stay above $100 a barrel in the coming weeks, and some analysts warn the national average for gas at the pump will eventually hit $5 a gallon.
Trump's Position
Trump said "I don't think about Americans' financial situation" when negotiating with Iran. President Donald Trump has now arrived in China, where he is expected to encourage Chinese leader Xi Jinping to push China-ally Iran to reopen the Strait of Hormuz, a chokepoint vital to oil trade, and agree to a peace deal.