US households are facing a US$450 energy bill surge as a result of the war in the Middle East, with Moody’s saying it could be four times that by next year
American households have now absorbed nearly US$450 in additional energy costs since the US instigated war with Iran in late February, according to analysts from Moody's Analytics.
The figure – US$447.19 per household on average – translates to a cumulative burden of close to US$60bn across the country, driven by sharp increases in the price of petrol, diesel and jet fuel over three months of conflict.
Mark Zandi, Chief Economist at Moody’s, has warned that the situation could get far worse if the fighting continues.
"Unless the war ends soon, financially pressed consumers will have no option but to turn more cautious in their spending, threatening the already soft economy," he said, speaking with CNBC.
