War with Iran drains US economy, hits ordinary citizens hardest

May 12, 2026 - 12:40

TEHRAN- As tensions with Iran escalate into prolonged military engagement, the economic toll on the United States is deepening, with ordinary Americans bearing the brunt of the cost, according to a growing body of analysis on the conflict’s domestic fallout.

Since March, gasoline prices have surged by more than 50 percent, placing severe financial strain on households already grappling with inflation. The spike in fuel costs has rippled across supply chains, pushing up the price of everyday goods and squeezing family budgets.

The job market is also suffering. Key sectors—including tourism, retail, and manufacturing—have shed thousands of positions, with monthly job losses accelerating as the war disrupts both consumer confidence and industrial activity. Analysts warn that the trend could worsen if hostilities continue without a clear resolution.

Perhaps most alarming is how the war is being financed. With tax revenues under pressure, the government has effectively shifted the burden onto citizens through mounting credit-based spending. Many Americans have been forced to rely on credit cards and personal debt to cover basic needs such as fuel and utilities, a fragile arrangement that economists say could trigger a wave of defaults.

Public debt is rising sharply, while political divisions in Washington over war funding have deepened. Republicans are increasingly split, with some lawmakers moving to curb presidential war powers amid concerns over unchecked spending.

The conclusion, drawn by multiple policy observers, is stark: the war with Iran is not just a geopolitical crisis—it is becoming an economic and social one, whose heaviest weight falls on the nation’s most vulnerable citizens.

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