How much did the war in Iran cost each US household?

As of Sunday evening, each American household has lost $316 due to the war in Iran, Financial Times reports. On May 17, gasoline prices in the US surged by 51 percent - the highest uptick among all G7 countries.

In terms of rising gasoline and diesel fuel prices, the damage inflicted on the US economy by the war in Iran reached $41.5 billion as of May 17, or $316 per every household in the country.

According to the newspaper, the additional fuel expenses caused by the price hikes exceed the entire federal bridge infrastructure investment program in the United States to restore key crossings ($40 billion); the full cost of modernizing the country’s system of air traffic control (31.5 billion); or funding all of the now-canceled federal electric vehicle charging infrastructure programs, proposed by former President Joe Biden ($18.9 billion).

Jeff Colgan, a political science professor at Brown University, told the FT that the United States is spending huge sums on extra fuel costs, which could be used much more efficiently by ensuring a sorely needed upgrade of America’s transportation infrastructure.

According to the American Automobile Association (AAA), cited by the newspaper, gasoline prices in the US spiked by 51 percent on Sunday, reaching $4.51 per gallon - the sharpest increase among all G7 nations. Diesel prices climbed by 54 percent to $5.65 per gallon.

FT emphasizes that the ballooning fuel prices have triggered widespread inflation, with the speed of consumer price hikes in April hitting a three- year record, while wholesale prices registered their biggest increase since 2022.

Earlier, The Financial Times wrote that the energy crisis caused by the war in Iran is entering a more dangerous phase as the summer season approaches. Oil, gasoline, diesel, and aviation fuel supplies will come under additional strain by an increased demand for air conditioning and vacation travel at the start of summer.

On April 29, Axios reported that US President Donald Trump and his administration officials held a meeting at the White House with leaders of the country’s oil and gas corporations to discuss the energy crisis.

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