As the conflict in the Middle East continues after seven months with inevitable economic consequences due to the vertiginous rise in energy prices and a boost in inflation, a recent analysis by Mark Zandi, Moody’s Analytics chief economist, highlighted that for U.S. households the prolonged war between the United States and Iran has cost them up to $860 in additional expenses.
According to Zandi," the conflict has caused about$ 115 billion in additional fees as the price of gasoline and diesel has increased. "
Middle- and low-income Americans are the ones who are most under pressure from higher prices, according to the scholar, who noted that those at the top of the income and wealth are effectively because they have jobs and do not have a lot of debt.
The condition is challenging, little more challenging, for lower- and middle-income Americans. Their wages have essentially stagnated and even some are declining, as a result of the war's adjustment to inflation.
Since the Covid-19 pandemic, Americans have been dealing with inflationary force, and although it has fallen from its all-time deep of 9. 1 %, their costs are still affected by current conflicts with Iran, which are accompanied by high tariffs.
Zandi believed that the discord would end and the Strait of Hormuz's transit had become normal, but the analyst does not think they would go back to the pre-war state because, in the majority of cases, there is a concern that the conflict will continue and the Strait may close once more.
However, a recent study by the Yale Budget Laboratory revealed that the trade war is also having an impact on American families ' money. However, the conflict with Iran is not the only factor. Americans will pay on average about$ 1, 000 in high taxes, which are reflected in their customer payments.
