Global Power Plays

Americans feel pinch of continued Iran war: ‘It’s screwed everything up’

Five months after the United States and Israel started a historically unpopular war against Iran that was going to supposedly last weeks, the fighting has refused to resolve in victory, defeat or peace.

Why this matters: Iran’s Supreme Leader had been killed in the opening strikes, ceasefires broke down, and the strait of Hormuz has been closed and re-opened.

What happened

Five months into a U.S. and Israeli campaign against Iran, the fight is still on. Ceasefires failed, Iran’s leadership was hit, and the Hormuz shipping lane has seen closures and reopenings. The war was meant to be short. It did not stay short.

Across small towns and suburbs, people say the cost of living rose. Gas is higher, grocery bills ticked up, and some families got sudden deployment orders. Those strains show up in daily life, not just headlines.

Who wins here

The main actors who gained leverage are the U.S. federal government and Israel. Their choice to use military force set events rolling. Defense contractors and energy traders also benefit when war raises demand and prices.

Ordinary people do not win. Lower- and middle-income households pay a bigger share of their budgets for food and fuel. Small businesses with thin margins face big stress.

How the play works

is simple: use military action to pursue political aims. That action changes global risk for oil and shipping. When the strait of Hormuz is unstable, traders push up fuel prices worldwide.

The second part is money. Congress and the administration fund operations with taxpayer dollars. That redirects funds away from social programs and local services. The result is higher prices and thinner safety nets at home.

Why it matters

This matters because the costs are local and immediate. A gas price spike hits a family’s budget the same week a neighbor loses SNAP benefits. That is a real tradeoff between war spending and day-to-day needs.

It also matters politically. Voters who feel the squeeze may shift their choices at the ballot box. People who lose trust in the stated reasons for war are harder to persuade in future debates about foreign policy.

What to watch next

Watch fuel and grocery price trends over the next 30 to 90 days. Persistent spikes mean the war’s economic bite will deepen. Also watch Congress for new funding bills and for any debate about tying wartime aid to clear exit plans.

Finally, track local service lines — food banks, transit, and rural businesses. Those will show how the national play lands in people’s lives.

LensGlobal Power Plays
TypeReporting
PublishedJuly 28, 2026
Read time3 min read
SourceThe Guardian
Where the facts come from

The facts in this story were first reported by The Guardian. What you're reading here is our take on what it means for power and for you.

Read the original at The Guardian
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