Iran war latest: Americans spending $266 more each month as prices rise

Added: 2026-05-16

[00:00:00]The war in Iran and now is hitting American wallets in a big way. The numbers from the Labor Department show inflation jumped to 3.8% the highest in nearly 3 years. Gas prices up nearly 30% year-over-year and the typical American household is now spending $266 more every month on the same goods and services as last year. The Strait of Hormuz where 1/5 of the world's oil supply passes through remains shut down with peace talks still at a standstill.

[00:00:27]On Capitol Hill today Defense Secretary Pete Hegseth faced tough questions but offered few answers on what comes next.

[00:00:34]We have a plan to escalate if necessary.

[00:00:36]We have a plan to retrograde if necessary. We have a plan to shift assets.

[00:00:42]The estimated cost of the Iran war now stands at $29 billion just up from $25 billion 2 weeks ago.