Iran War Costs Hit $29 Billion as U.S. Grocery Prices Surge

The U.S. Department of War reported on May 12 that the Iran war has cost nearly $29 billion so far, driven by repair costs, equipment replacement, and ongoing military operations. Meanwhile, U.S. grocery prices rose 2.9% in April compared to the same month last year, with overall food inflation hitting 3.2% annually, according to the Labor Department's consumer price index. The conflict has disrupted global oil supplies, pushing gas prices to an average of $4.50 per gallon, up 61% from a year ago, according to AAA. Fuel surcharges and higher wholesale costs for meat, produce, and dry goods are straining small grocers like Sparrow Market in Michigan. Economists warn that the full impact of rising energy costs on food prices may not yet be reflected in retail prices, as supply chain adjustments can take three to six months. The Pentagon requested $200 billion from Congress in March to fund the war, with some estimates suggesting the total cost could reach $50 billion. The conflict has also contributed to broader inflation, with consumer prices rising 3.8% annually in April, the highest rate in nearly three years. Analysts warn that if oil prices remain elevated, inflation could exceed 4% by June. The Trump administration has stated it expects the disruption to be temporary, with gas prices likely to recede once crude supplies resume.