Iran war adds $287 to each U.S. household’s fuel bill

A Brown University tracker estimates the Iran war has increased U.S. spending on gasoline and diesel by $37.6 billion since the conflict began on Feb. 28, which works out to about $287 per U.S. household. The national average price at the pump is $4.52 a gallon, a 51.6% rise from the pre-war level of $2.98 over 72 days.

The Iran War Energy Cost Tracker is maintained by the Watson School of International and Public Affairs and led by Jeff Colgan. The model uses fuel price data from the American Automobile Association and builds a counterfactual scenario of what prices would have been without the conflict; the difference between actual and counterfactual prices forms the reported cost to consumers. The tracker is updated in real time and attributes the extra expense to the conflict’s effects on global energy markets.

The tracker states: “Fuel costs are just one part of a war’s consequences, but they come directly out of Americans’ pockets. These costs are rising every day.”

Analysts say supply disruptions tied to the region pushed prices higher, including the closure of the Strait of Hormuz, a maritime chokepoint that handles nearly 20% of global energy shipments. U.S. airlines reported higher fuel spending: jet fuel costs totaled about $5.06 billion in March, a roughly 56% increase from February as carriers faced higher prices and supply volatility.

The economic impact has extended beyond fuel. Inflation for U.S. food and beverage companies rose 7.9% year over year in March, the largest increase in at least a year. A Generation Lab survey found 77% of Americans believed the strikes against Iran were the wrong call.

Colgan wrote the added cost is borne directly by consumers and that the tracker presents the expense as an ongoing burden tied to shifts in supply and market uncertainty since Feb. 28.