On Feb. 28, President Donald Trump declared the United States and Israel had launched military attacks on Iran. On March 1, Trump said the Iran war would last “four to five weeks.”
The war has now lasted six months. The conflict has shifted from sustained combat strikes to a prolonged confrontation over the Strait of Hormuz, a vital Middle Eastern shipping route that routinely handles about a fifth of the world’s oil trade.
The administration announced new sanctions against Iran and its allies Aug. 25 as economic pressure to force Tehran to accept its demands. But the White House has not ruled out further military action.
In the United States, the war has hurt Trump’s approval rating. It also has raised domestic fears over the U.S. economy, mostly because of disruptions in oil shipments and rising energy costs.
Here is how the Iran war is affecting you.
It costs more to eat at home and in restaurants
The Iran war caused food price increases as a consequence of higher costs for fertilizer and transportation.
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It costs more to fertilize crops
The disruption of freight through the Strait of Hormuz has cut into vital shipments of global fertilizer exports, notably urea and ammonia, two major nitrogen fertilizers. Roughly one-third of global seaborne fertilizer trade passes through the strait, according to the United Nations.
The fertilizer shortage has raised prices, affecting farmers and food production.
It costs more to drive
Gas prices rose as oil shipments through the Strait of Hormuz declined. Gasoline prices generally rise and fall with the price of crude oil, the principal cost for gasoline.
The Houthis, a political-religious faction in Yemen, announced a Red Sea blockade July 20. The group controls a narrow waterway known as the Bab el-Mandeb Strait, one of the world’s most important oil shipping routes.
Global oil prices hit $100 a barrel July 23 after Iranian-supported Houthi forces announced attacks on two oil tankers from Saudi Arabia, a U.S. ally.
The Bab el-Mandeb Strait is open to commercial shipping, but is still under threat from the Houthis.
It costs more to fly …
… in part because of jet fuel prices
The price of airline travel rose because jet fuel prices increased in the first weeks of the war. Jet fuel is refined from crude oil and is a major expense for airlines, as much as 30% of operating costs.
Airlines responded by raising prices, adding fuel surcharges and offering fewer flights.
It reduced faith in the U.S. economy
The consumer sentiment index, a monthly survey of how confident Americans are about their own personal finances and the overall U.S. economy, fell 7.6% in August after two months of improvement.
The index declined partly because of the Iran war, which is keeping gas prices above $4 a gallon.
It also showed more overall pessimism about future business conditions and fears that inflation will erode purchasing power.
Source: USA TODAY Network reporting and research; Reuters; AAA; U.S. Bureau of Labor Statistics; Federal Reserve Bank of St. Louis; U.S. Energy Information Administration; World Bank; University of Michigan