Senate Democrats: Iran War Cost US $8.4B In Gas Prices

High Gas Prices — Source: Smith Collection/Gado / Getty

The economic impact of the ongoing war in Iran was felt almost immediately across the world. Gas prices shot up globally within days of the first missile strikes and have yet to come down. In fact, the Joint Economic Committee’s Democratic minority estimates that the Iran war has cost U.S. citizens an additional $8.4 billion at the gas station.

According to CBS News, the estimate is based on AAA’s tracking of daily gas prices since the war in Iran began. The committee also used data from auto researcher Edmunds to determine the fuel tank size for the highest-selling cars in the U.S., as well as fuel consumption data from the Federal Highway Administration and Energy Information Administration.

President Donald Trump’s prime-time address on Wednesday did little to alleviate the economic turmoil caused by the Iran War. NBC News reports that on Thursday, oil prices surged the most in a day since 2020, driven by Trump not committing to a near-term end to the Iranian conflict.

For the first time since 2022, the average price of gas in the United States is now $4. In Arizona, I’ve been paying $4.99 at the pump for the last few weeks, with my average spend going from $34 to $54. California currently has the highest gas prices in the nation, with the average cost hovering below $6.

“The strain is starting to show, especially as gas hits $4 a gallon nationwide,” Heather Long, chief economist at Navy Federal Credit Union, told CBS News in an email. “It’s almost certainly going to be a muted second quarter for spending and GDP growth as the worst of the inflation shock hits consumers.”

The Trump administration has continually tried to downplay the economic impact of the Iran war. “When Operation Epic Fury is complete, gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions. President Trump remains committed to fully unleashing American energy dominance, lowering costs and putting more money back in the pockets of hardworking American families,” White House spokeswoman Karoline Leavitt said in a statement to CBS News.

One big issue with that statement is that there’s no clear timeline on when the Iran war will end. Trump was inconsistent in his messaging during the Wednesday speech, simultaneously promising that the war would end in two to three weeks, while also saying that the strikes in Iran would continue until the U.S. military’s objectives are “fully achieved.” It’s still unclear exactly what the U.S. military’s objectives are in Iran. It’s also worth noting that Trump said the war would be over within four weeks, four weeks ago.

From NBC News:

The cost of U.S. crude oil continued pushing higher to more than $111 per barrel, up nearly 12% since Wednesday, its biggest one-day price jump in six years. For the year, it’s now up 94%.

Brent, the international oil benchmark, rose nearly 8% to more than $109 per barrel. For the year, the price of Brent has surged nearly 80%.

In his speech Wednesday, Trump said the war would end “shortly,” but he simultaneously pledged to conduct additional “extremely hard” strikes on Iran “over the next two to three weeks.”

Missing from Trump’s address was any structured path to a ceasefire. He likewise did not put forth any plans to reopen the strait, through which more than 20% of the world’s oil supply typically passes.

Even if the war in Iran were to miraculously end in the near term, the downwind effects are likely to be felt. Much of the world’s fertilizer supply passes through the Strait of Hormuz, which is effectively closed due to the U.S. and Israel’s ongoing airstrikes. This will almost certainly result in an increase in the price of food. There’s growing concern among analysts that a prolonged conflict in Iran could ultimately result in a global recession.

Love how the dude elected on no new wars and lowering prices has started a new war that’s drastically increasing prices. This is why you should never give a failson a position of actual power, folks.

Iran War Already Increasing Gas Prices, Mortgage Rates

Senate Democrats Estimate Iran War Cost Americans $8.4B In Gas Prices was originally published on newsone.com