File photo: There has been no visible very large crude carrier exiting the strait since September 2, Kpler data
The Iran war has already cost US consumers more than $100 billion in higher gasoline and diesel prices, with the tab continuing to climb by roughly $1 million every two minutes, according to a real-time estimate from Brown University’s Watson School. The cost works out to about $767 per US household since the conflict began on February 28, with gasoline accounting for roughly $55 billion and diesel for another $45.5 billion, according to Brown’s Iran War Energy Cost Tracker. The hit is getting heavier for diesel users as prices have risen about 61% from a year ago, reaching a record $5.90 a gallon on Monday, according to AAA. Texas has taken the biggest hit so far, with consumers paying about $11 billion more for gasoline and diesel since the war began, according to the tracker. California followed with about $8 billion and Florida with roughly $5 billion. Most of the household burden has come from gasoline, which rose from $2.98 a gallon when the war began to about $4.15, a 39% increase. The average household has spent an estimated $420 more on gasoline alone, according to Brown’s calculations. For American consumers, that could mean the $100 billion figure is far from the final bill.
Diesel is heavily utilised in trucking, freight and travel, meaning higher fuel prices can feed into the price of goods and services across the economy. The surge also creates a political problem for US President Donald Trump, who has argued that Americans are willing to bear higher prices to prevent Iran from obtaining a nuclear weapon. But inflation remains voters’ top concern, and the president faces weak ratings on the issue.
With less than two months before the midterm elections, the longer fuel prices remain elevated, the harder it could become for the administration to convince voters that the economic pain is worth the cost.