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A Moody's Analytics report indicates that the average U.S. household has spent an additional $447.19 on fuel-related expenses since the start of the conflict with Iran on February 28. This cumulative $60 billion impact stems from rising costs for gasoline, diesel, and airline fares, which have surged as the conflict reaches its three-month mark. Economists note that these expenses are straining household budgets, forcing consumers to rely more on savings and debt to maintain spending levels.
While consumer spending rose 0.5% between March and April, analysts observe that personal income growth has remained flat and the personal savings rate has dropped to 2.6%. Experts, including Moody's chief economist Mark Zandi, warn that if energy prices remain at current levels, the average household could face nearly $2,000 in additional costs over one year. The financial burden is reportedly eroding the benefits of recent tax refunds and disproportionately affecting lower-income households.
The average U.S. household has incurred $447.19 in additional fuel-related costs since the Iran conflict began on February 28.
Rising energy prices have resulted in a cumulative $60 billion increase in consumer spending on gasoline, diesel, and airfare.
Moody's Analytics projects that households could lose nearly $2,000 annually if energy prices remain at current levels.
The personal savings rate has fallen to 2.6%, while credit card debt reached $1.25 trillion in the first quarter of 2026.
Higher energy costs have largely offset the $384 average household boost provided by recent tax refunds.
The increase is driven by rising prices for gasoline, diesel, and jet fuel, which have surged significantly since the start of the conflict in late February.
Consumers are increasingly relying on personal savings and credit card debt to cover expenses as income growth remains flat.
Lower-income households are hit hardest because they spend a larger percentage of their total budget on food, energy, and transportation.
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