"Iran war could cost each U.S. household an extra 1.4 million won," WP says... long-term cost could reach $1 trillion

[Financial News]  

The Iran war, now in its sixth month, is expected to add about $1,000, or roughly 1.41 million won, in costs for each U.S. household.
The Washington Post (WP) reported this on the 7th local time, citing an analysis by Mark Zandi, chief economist at Moody's Analytics. The $1,000 per household estimate includes direct and indirect military costs, as well as inflation. In addition, households are expected to bear another $250, or about 350,000 won, in taxes needed to cover military spending.
He pointed out that the mounting cost of the war has already offset President Donald Trump's tax-cut policy. In other words, the Iran war launched by Trump has already eroded the impact of what he considers his biggest achievement.

According to WP, experts believe the Iran war is costing more than the U.S. Department of Defense has announced.
Earlier, Defense Secretary Pete Hegseth told a hearing of the United States Senate Committee on Appropriations on the 22nd of last month that $37.5 billion had been spent so far on the war and requested an additional $67 billion from Congress.
However, Mark F. Cancian, a senior adviser at the Center for Strategic and International Studies (CSIS), estimated in June that the war had cost between $35.2 billion and $42.5 billion, based on troop deployments, munitions, operational tempo, equipment losses, base damage, and higher oil prices. He said munitions alone accounted for more than $26.1 billion.
Elaine McCusker, a senior fellow at the American Enterprise Institute for Public Policy Research (AEI), also estimated that the war had cost $38.6 billion as of June.
McCusker, who previously served as deputy undersecretary of defense, explained that this amounts to about $115 per person when divided across the U.S. population.

Linda Bilmes, a professor of public policy at Harvard Kennedy School, criticized the war, saying that the Pentagon budget will surge and benefits must also be provided to veterans. She argued that when these "long-term costs" are taken into account, the total cost of the war could reach $1 trillion.
AEI also projected that an additional $5 billion would be needed if indirect costs such as rebuilding, repairs, design, and engineering for U.S. military bases in the Middle East are included.
There is also the burden of higher fuel prices.
Brown University's Climate Solutions Lab estimates that Americans have paid more than $79.8 billion in additional costs for gasoline and diesel since the war began. That comes to $609 per household.


[email protected] Song Kyung-jae Reporter