No worries, Exxon Mobil will be okay. They'll survive this somehow.
Gasoline prices have risen over $1.25 per gallon since the Iran conflict began in late February 2026, reaching over $4.20 nationwide by late April, with drivers in some states facing over $6 a gallon. Households have spent an extra $150 on gas in just two months, with costs projected to rise by $800 annually. [
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Impact on Americans (As of Late April 2026):
- Total Cost Impact: Americans have already spent an estimated $8 billion extra on gasoline, with projected additional costs of $800 per household by year-end.
- Gasoline Price Jump: Average U.S. gas prices have risen more than $1.25 per gallon (over 40%) since the conflict started in late February.
- Monthly Costs: The surge adds approximately $38 monthly for a car and $55 monthly for a light truck/SUV.
- Regional Differences: California has seen prices average over $6 per gallon, with other states like Hawaii, Nevada, Oregon, and Washington also experiencing high costs.
- Broader Economic Impact: Oil prices have surged towards $120+ per barrel. Diesel prices increased by over 45%, causing inflation in other goods due to higher transportation and plastic packaging costs.
United States Defense Secretary Pete Hegseth has clashed with American lawmakers over the cost of war on Iran in his first appearance on Capitol Hill since the conflict – now into its third month – broke out.
The Pentagon told a hearing of the House Armed Services Committee on Wednesday that the US had spent $25bn on its war on Iran, largely on munitions and equipment maintenance.
But Democratic leaders and several economists believe that number to be a significant underestimate. They say the actual cost to the US economy and the country’s 330 million people could amount to between $630bn and $1 trillion.
As the US-Israel war on Iran drags on, with no agreement in sight, the Trump administration has asked for a $1.5 trillion defence budget for next year – a 42 percent increase, or the largest expansion in military spending since World War II.
So, how much is the war on Iran costing the US, and does the answer depend on whose perspective matters more?
Representative Ro Khanna stated that the cost of the war was well above the Pentagon’s estimated $25bn figure. “Do you know how much it will cost Americans in terms of their increased cost in gas and food over the next year because of Iran?” Khanna asked.
As the US continues with its blockade of Iranian ports, and Tehran controls the Strait of Hormuz, gas prices in the US have hit a new high at $4.23 a gallon – the highest since 2022, when Russia invaded Ukraine. The Brent crude benchmark has been trading above $120.
The 40 percent rise in gas prices, compared with before the war, has led to the president’s approval rating hitting a record low in his second term, according to a Reuters/Ipsos poll released earlier this week. Only 22 percent of Americans approved of Trump’s handling of the cost of living.
Khanna claimed the war would cost about $631bn – or some $5,000 per household – to the US economy due to increased gas and food prices.
“You don’t know what we paid in terms of the missiles that hit the Iranian school. You don’t know what we’re paying in terms of gas. You don’t know what we’re paying in terms of food,” Khanna told Hegseth. “Your $25bn number is totally off.”
Linda Bilmes, a leading Harvard economist, has predicted that the total cost of the war could amount to $1 trillion.