Economist estimates Iran war has cost average US household $1,000

The four-month Iran war has cost the average U.S. household roughly $1,000 so far, according to Moody's Analytics chief economist Mark Zandi, who says the economic burden continues to grow despite the recent ceasefire.

Writing in an op-ed, Zandi said the estimate includes about $300 in higher gasoline costs, $200 from rising diesel prices that have increased shipping costs, $100 from more expensive air travel, roughly $250 in military spending and a further $150 linked to higher borrowing costs if the Federal Reserve raises interest rates to combat inflation.

Zandi argued that while Washington and Tehran have agreed to halt hostilities and resume negotiations, the costs of the conflict are likely to persist.

He warned that shipping insurance in the Strait of Hormuz is expected to remain elevated and said any future Iranian fees on vessels using the waterway could keep upward pressure on energy prices.