Moody's: US-Iran Conflict Adds $447 Average Energy Cost to American Households

Huo Xing Finance reports that, on June 1, Moody’s Analytics latest research shows that since the outbreak of conflict between the U.S. and Iran, the average American household has incurred an additional $447.19 in energy-related expenses, bringing the total additional cost to U.S. consumers close to $60 billion. The report notes that rising energy prices are primarily reflected in gasoline, diesel, and airfare costs. Gasoline expenses account for approximately half of the additional household spending, while higher diesel prices have added over $20 billion in extra costs for consumers, and increased aviation fuel costs have driven up airfare expenditures by nearly $10 billion. Moody’s Chief Economist Mark Zandi warned that if current energy prices remain unchanged, the average American household could lose nearly $2,000 in purchasing power over the next year due to rising energy costs, which may further suppress consumer spending and weigh on an already sluggish U.S. economy. Data shows that the national average price for regular gasoline has risen to $4.39 per gallon, while diesel averages $5.52 per gallon. Meanwhile, airfares increased by over 20% year-over-year in April, with low-income households being disproportionately affected by the surge in energy prices.