- The ongoing U.S. war with Iran could cost the American economy between $50 billion and $210 billion, with a current estimate of $115 billion, according to fiscal analyst Kent Smetters of the Penn Wharton Budget Model.
- The conflict is already disrupting trade, global energy markets, and driving up gasoline prices, with West Texas Intermediate crude oil prices rising over 5% and national average gasoline prices up more than 10 cents.
- The president stated the U.S. could provide military escorts for oil tankers in the Strait of Hormuz to ensure the free flow of energy and acknowledged that oil prices might be higher 'for a little while.'
- Analysts suggest the economic impact largely depends on the duration of the conflict, with concerns that markets are under-pricing the risk of a sustained engagement.
- Beyond economic losses, the military campaign, dubbed Operation Epic Fury, could incur an additional $65 billion in budgetary spending, though the president informed Congress the full scope and duration are currently unknown.
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