Overview
- Moody's Analytics estimated on May 29 that U.S. households have paid about $447.19 extra each in fuel costs since the Iran War began, equal to roughly $59 billion nationwide.
- About half of the added bill comes from higher gasoline prices, with large contributions from diesel and implied jet‑fuel costs that have pushed airline fares up over 20% year over year in April.
- Consumers are showing strain: the personal savings rate fell to 2.6% in April and credit‑card debt reached $1.25 trillion in the first quarter, signaling more reliance on savings and borrowing to cover higher energy bills.
- Economists and major banks, including Moody's chief economist Mark Zandi and Goldman Sachs, warn that sustained high fuel prices could force households to cut discretionary spending and slow overall economic growth.
- The price spike has been driven by disruptions to seaborne oil flows through the Strait of Hormuz tied to the conflict, and short‑term policy moves such as a Jones Act waiver and talks of a federal gas‑tax pause have so far produced limited nationwide relief.