War Has Stopped, But the Bill Remains... 203 Trillion Won Hits U.S. Consumers

NYT Estimates Iran War Cost at $132 Billion
Fuel Costs Place the Greatest Direct Burden on Consumers

The war between the United States and Iran, which lasted for 107 days, has come to an end with the signing of a memorandum of understanding (MOU) for a ceasefire. However, the enormous cost of the war is expected to continue impacting the overall U.S. economy as an aftershock.

According to Yonhap News Agency, The New York Times (NYT) reported on the 19th (local time) that, citing data from international credit rating agencies and economic analysis organizations, the cost left by the Iran war on the U.S. economy amounts to at least 132 billion dollars (approximately 130 billion dollars), or about 203 trillion won. The report highlighted that this figure far exceeds the war-related cost estimates previously reported by the U.S. Department of Defense to Congress.

According to the report, while the Department of Defense assessed military costs at around 29 billion dollars as of last May, experts point out that this figure does not include the costs to restore U.S. military bases and diplomatic facilities in the Middle East damaged by Iranian attacks, carrier strike group operating expenses, or the cost of replenishing used weapons and ammunition inventories.

Gasoline prices displayed at a gas station in Ohio. Analysts have concluded that fuel costs are the most direct burden on American consumers due to the war between the United States and Iran. Photo by Yonhap News Agency

In fact, during the course of the war, numerous military and diplomatic facilities—including the U.S. Air Force's E-3 Sentry early warning and control aircraft deployed in Saudi Arabia—were reported to have sustained damage. The price of a single E-3 Sentry can reach several hundred million dollars.

Beyond direct military spending, the estimate also includes increased consumer burdens due to rising energy prices, surging raw material costs, and higher financial expenses caused by inflationary pressures. In particular, the Strait of Hormuz was effectively paralyzed throughout the war, causing international oil prices to soar and making fuel costs the most direct burden for consumers. The average gasoline price in the United States jumped from about $2.98 per gallon before the war to over $4 at one point.

Additionally, higher jet fuel prices drove up airfares, while maritime shipping and transportation costs also surged, impacting the entire logistics and manufacturing sectors. The rise in raw material prices pushed up production costs for companies, which in turn led to higher consumer prices. Increased costs for fertilizer ingredients further raised agricultural production expenses, which was cited as a factor fueling food price hikes.

There has also been a growing interest burden. As rising oil prices intensified inflationary pressures, analyses suggest that the U.S. Federal Reserve will be forced to maintain monetary tightening longer than expected. This is likely to further increase borrowing costs for businesses and households, adding additional strain to the overall economy.

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