Moody’s Analytics Chief Economist Mark Zandi Puts Iran War Cost Near $2,000 Per Household

On Oct. 12, Moody’s Analytics Chief Economist Mark Zandi estimated that the Iran war had raised average household costs by nearly $2,000, placing the national estimate at about $265 billion.

Zandi’s component estimates assign about $1,100 per household to energy and transportation, $540 to higher interest rates and $360 to military spending. Together, those amounts total $2,000, though Zandi characterized the overall burden as nearly that amount. The estimate combines household costs with military spending; it is not a tally of direct federal outlays.

Energy and transportation made up the largest share. Zandi said that portion was rising by roughly $50 a week per household at fuel prices in effect at the time.

“Consider that the war’s costs taken together have absorbed about half the average American household’s income gain over the past eight months,” Zandi wrote on X.

The war began with U.S. and Israeli attacks on Iran on Feb. 28.