US Consumers Face $100.9 Billion in Extra Energy Costs From Iran War

According to Sina Finance, a Brown University cost-tracking study found that since the war began at the end of February, U.S. consumers have spent an extra $100.9 billion on gasoline and diesel alone. That works out to about $770 more per U.S. household, and the study said the figure is likely to keep rising as fuel prices remain elevated. Tom Kloza, chief energy adviser at Gulf Oil, said in a weekend interview that gasoline prices will reach record highs this fall, with diesel prices even higher. He said this will push inflation higher in multiple ways. The study measured the additional burden by comparing actual energy prices with hypothetical prices in a no-war scenario. It said the conflict is eroding Americans' disposable income, even though energy prices have not surged as sharply as many had feared. According to Sina Finance, U.S. consumers have spent an extra $55 billion on gasoline alone since the war began, or an average of $422 per household. The American Automobile Association said gasoline prices rose to a three-month high on Tuesday, topping $4.15 per gallon, and this year's Labor Day Monday gasoline price was the highest for the holiday period on record. Gasoline prices were $3.20 per gallon a year earlier and $2.98 per gallon before the war. Current prices remain well below the postwar peak of $4.56 per gallon set in May and below the record $5.02 per gallon reached after Russia invaded Ukraine in 2022.