Trump’s Manufactured Iran War Is Driving Up Costs for Everyday Americans

The war with Iran, stoked by the Trump administration’s aggressive military and economic tactics, is doing real damage on the home front. According to CNN Business, the conflict has roiled financial markets, pushing up borrowing costs across the board—from mortgages to auto loans to credit cards—and squeezing American families already struggling with rising prices.

Mortgage rates have climbed for five straight weeks after the war began. While they recently dipped slightly to an average 6.37% for a 30-year fixed mortgage, that’s still significantly higher than just weeks ago when rates fell below 6% for the first time in years. For a typical $500,000 home, this means a buyer locking in a mortgage today will pay over $36,000 more in interest over 30 years compared to someone who secured a loan before the war started.

Wall Street’s jitters over the conflict have driven up yields on US Treasury bonds, which mortgage rates closely track. The 10-year Treasury yield jumped from under 4% in late February to over 4.4% in March, reflecting investor worries about inflation and the economic fallout of prolonged military engagement. Jeffrey Roach, chief economist at LPL Financial, warns that “the longer global oil supply is crimped, the more likely inflation pressures will increase.”

Auto loans are also feeling the squeeze. While five-year auto loan rates have remained around 7%, higher Treasury yields could keep these rates elevated, making financing a new car more expensive. This comes as Americans face rising gas prices and higher vehicle sticker costs, compounding the strain on household budgets.

Credit card interest rates, which often follow the Federal Reserve’s benchmark rate, remain stubbornly high—averaging above 19%—despite some recent Fed rate cuts. The war with Iran has dampened hopes for further rate reductions, as markets now expect the Fed to hold rates steady amid inflation risks tied to the conflict. This means everyday purchases charged on credit cards will continue to cost more in interest, hitting consumers hard.

This economic pain is a direct consequence of the Trump administration’s choice to manufacture a war with Iran—a conflict that serves to distract from domestic scandals and consolidate power but leaves ordinary Americans footing the bill. As borrowing costs rise and inflation pressures mount, the administration’s reckless foreign policy is deepening the financial burden on families across the country.

We will keep tracking how these policies undermine economic stability and democratic accountability. The cost of Trump’s Iran war is not just measured in lives and diplomacy—it’s measured in every extra dollar Americans have to pay to keep a roof over their heads and a car in their driveway.