"Most Americans Didn't Want This"... Americans Lose 60 Trillion Won to Soaring Fuel Costs

An analysis has found that, due to the Iran war, Americans have spent more than $40 billion (approximately 60 trillion won) in additional fuel expenses alone.

Reuters Yonhap News

According to the Financial Times (FT) on May 18 (local time), the Watson Institute for International and Public Affairs at Brown University estimated that the burden on consumers from higher gasoline and diesel prices since the Iran war has reached $41.5 billion. This amounts to $316 per U.S. household.

In particular, fuel prices in the United States have surged sharply since the Iran war. According to the American Automobile Association (AAA), the recent price of gasoline in the United States has jumped 51% to $4.51 per gallon, the steepest increase among the Group of Seven (G7) nations. Diesel prices have also soared by 54% to $5.65 per gallon, nearing an all-time high.

Jeff Colgan, professor of political science at Brown University, said, "The United States as a whole is spending a huge amount of money on additional fuel costs," adding, "This money could have been used in far more productive ways, such as improving U.S. transportation infrastructure that requires investment."

The FT reported that the aftermath of the Iran war has spread throughout the U.S. economy. The inflation rate has soared to its highest level since Russia invaded Ukraine, and U.S. President Donald Trump is facing growing political pressure. Rising gas prices at the pump have not only burdened drivers. As fuel costs have spread to other sectors, overall expenses—from groceries to airline tickets—have increased.

The additional $41.5 billion burden from higher fuel costs exceeds the entire $40 billion budget of the federal bridge investment program for repairing major bridges. It also surpasses the $31.5 billion needed to completely overhaul the U.S. air traffic control system, as well as the $18.9 billion federal electric vehicle charging and electrification program proposed by former President Joe Biden.

Professor Colgan said, "If it weren't for the increased fuel costs from a war that most Americans did not want, we could have used that money to build the transportation infrastructure of the future."

This content was produced with the assistance of AI translation services.