American households are facing higher energy costs and borrowing rates as the US conflict with Iran puts pressure on consumers, according to an analysis by Moody’s Analytics.
The analysis estimated that the conflict had cost the average household about $1,760 through September 11. Higher energy prices accounted for $930, while rising interest rates contributed $425.
Another $405 reflected increased military spending that could eventually be financed through higher taxes or government debt.
Meanwhile, the 10-year Treasury yield reached its highest level since 2007. Mortgage rates topped 7%, adding pressure to an already strained housing market.
Economists cited by the report warned that declining real incomes and falling savings could eventually force Americans to reduce spending, which remains a major driver of the US economy.
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Consumers hit by one-two punch of oil and rates from Iran war. The estimated bill is $1,700 per household https://t.co/cIw8ORAwpS
— CNBC (@CNBC) September 16, 2026
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