The fiscal impact of the conflict is not confined to the halls of the Pentagon; it is rapidly cascading into the domestic economy. As the war intensifies, global energy markets have reacted with extreme volatility. The effective closure of the Strait of Hormuz—a vital trade artery that typically carries 20% of the world’s oil supply—has pushed Brent crude prices past the psychological threshold of $100 per barrel for the first time since 2022, with some benchmarks peaking near $120. For American households, this has translated into an immediate and painful surge at the pump, with gasoline prices rising by as much as 10 cents per gallon daily in some regions.
