The War with Iran Is Weighing on the United States and Becoming a Challenge for Trump

The conflict with Iran is costing the United States increasingly more, turning into a serious concern for President Donald Trump.

Although, after six months of war, the U.S. economy is showing more resilience than expected, most experts do not predict a recession and unemployment remains low. Nevertheless, families and businesses are facing higher fuel, transportation and food prices.

One of the main reasons is linked to rising energy prices, caused by the conflict itself and the closure of the Strait of Hormuz. The paralysis of traffic in the area has disrupted one of the most important sea routes for fuel transportation.

“The oil market is particularly concerning. Oil prices have reached record levels,” says Alema Croft, a commodities expert at RBC Capital Markets. Higher oil prices make transportation more expensive and also affect food, goods and travel.

In addition to its impact on consumers, the war is also weighing on U.S. public finances. According to estimates cited in the analysis, direct costs to taxpayers have exceeded $100 billion and are expected to rise further.

Some of the military costs are being covered through new borrowing. As a result, the government will have to pay higher interest in the coming years, increasing the financial burden on American taxpayers.