War with Iran Strains U.S. Wallets

Conflict disrupts global trade and supply chains, driving up costs for Americans

Mar. 14, 2026 at 1:08am

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The first week of the war with Iran has already cost U.S. taxpayers over $11 billion, not including the buildup of troops and warships in the region. The conflict has disrupted global trade, closing the Strait of Hormuz and driving up prices for gasoline, electricity, fertilizer, and consumer goods. Analysts warn the economic impact could worsen if the war drags on, potentially triggering a global recession.

Why it matters

The war in Iran is having far-reaching economic consequences for Americans, from higher prices at the gas pump to rising costs for food, housing, and consumer electronics. The disruption to global supply chains and trade routes could exacerbate existing inflationary pressures and undermine the economic recovery.

The details

The closure of the Strait of Hormuz, a crucial global trade route, has disrupted the flow of oil, natural gas, fertilizers, and other commodities. This has driven up prices for gasoline, electricity, and a range of consumer goods. The war has also impacted the production and export of key materials like aluminum and helium, which are essential for manufacturing. Analysts warn that prolonged disruptions could push oil prices above $200 per barrel, further straining household budgets.

  • The war began on February 28, 2026.
  • The first week of the war cost U.S. taxpayers over $11 billion.
  • On March 12, 2026, the average price of gas hit nearly $3.60 per gallon, a jump of 35 cents in a week.

The players

Donald Trump

The President of the United States, who has offered conflicting timeframes for how long the strikes against Iran will continue.

Zippy Duvall

The president of the American Farm Bureau Federation, who warned that farmers across the U.S. would face disruptions in fertilizer supply and higher prices, which would translate into higher grocery prices for consumers.

Scott Kirby

The CEO of United Airlines, who warned that airfares are likely to increase due to the rising cost of jet fuel.

Wayne Winegarden

An economist at the Pacific Research Institute, who said the war is putting upward pressure on prices for gasoline, electricity, and groceries through higher transportation, packaging and fertilizer costs.

Ruben Nizard

The head of sector research at analytics firm Coface, who said prolonged disruptions could raise crude oil prices beyond the 2022 peak of $127 a barrel or even the all-time high of $147 a barrel.

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What they’re saying

“The war is putting upward pressure on prices for gasoline, electricity, and groceries through higher transportation, packaging and fertilizer costs. This will worsen affordability for families already struggling with the high cost of living.”

— Wayne Winegarden, Economist, Pacific Research Institute (TIME)

“If traffic through the Strait remains largely halted, I expect prices to continue rising. Current disruptions have the potential to trigger an unprecedented supply shock.”

— Ruben Nizard, Head of Sector Research, Coface (TIME)

“If you can tolerate oil at more than $200 per barrel, continue this game.”

— Iranian Revolutionary Guard Corps (TIME)

What’s next

The U.S. and its allies have agreed to release 400 million barrels of oil from strategic reserves in an effort to ease surging crude and fuel prices, but analysts warn this will only provide temporary relief if the conflict persists.

The takeaway

The war in Iran is already taking a significant economic toll on Americans, driving up the cost of everything from gas to groceries. If the conflict drags on, it could trigger a global recession, underscoring the fragility of international supply chains and the need for greater economic resilience.