The 15‑week U.S.–Iran conflict has ended with a preliminary peace agreement, but the financial and human costs remain severe. The war, triggered by U.S.–Israeli strikes on Iran in late February, disrupted oil flows through the Strait of Hormuz, rattled supply chains, and pushed global prices higher.
According to Moody’s Analytics, the overall cost to the U.S. is estimated at $132 billion, including military spending, energy price spikes, and rising interest rates. Pentagon officials revealed military expenses alone reached $29 billion, excluding repairs to damaged bases and replacement of munitions. Iran inflicted damage on U.S. assets, including radar aircraft and embassy facilities in Saudi Arabia.
American households have paid about $60 billion more for fuel, averaging $460 extra per family, as gasoline surged from $2.98 to nearly $4 per gallon. Crude oil briefly touched $120 per barrel before easing to around $80 after the peace framework. Yet, experts warn airfares and shipping costs will not drop quickly, as airlines and carriers adjust slowly.
The Strait’s closure also disrupted fertilizer supplies, raising food inflation and threatening crop yields globally. Farmers face soaring costs, while shipping industries expect prolonged surcharges and shortages.
Though peace talks have begun, economists caution that recovery will be slow, with elevated costs likely to persist across energy, food, and trade for months.
