Morning Business Report: Inflation rises as Iran war costs climb to $29 billion
The estimated cost of the war involving Iran has now climbed to approximately $29 billion, according to a senior Pentagon official.
(LILAMAX) – The estimated cost of the war involving Iran has now climbed to approximately $29 billion, according to a senior Pentagon official.
The updated figure is roughly $4 billion higher than estimates provided less than two weeks ago. Defense Secretary Pete Hegseth repeatedly declined to tell lawmakers how much emergency funding the administration may request from Congress to continue supporting the 11-week-old conflict.
Meanwhile, Iran announced it has significantly expanded its definition of the Strait of Hormuz, claiming a much larger portion of the surrounding waters than before the war began. The ongoing conflict is also continuing to impact Americans financially. Inflation surged in April to its highest level in nearly three years, driven largely by rising gas prices tied to instability in the Middle East. Prices also increased last month for airfare, fruits and vegetables, and apparel.
Despite pressure on technology stocks, markets showed mixed results overall, with the Dow Jones Industrial Average closing higher after spending much of the trading session in negative territory. Financial concerns are also growing for millions of Americans with student loans. According to the Federal Reserve Bank of New York, student loan defaults are now appearing on credit reports again for the first time since the COVID-19 pandemic. Officials say roughly one million borrowers fell into default during the final quarter of 2025, while another 2.6 million borrowers defaulted during the first quarter of 2026. The report also showed slight increases in defaults involving car loans and home mortgages. At the same time, many Americans say tax refunds are no longer providing financial relief.
A new survey commissioned by TaxSlayer and conducted by Talker Research found the average refund this year was $2,825. However, nearly half of respondents said they had to spend their refunds entirely on necessities just to keep up with daily expenses. The survey also found that 71% of taxpayers have already spent or planned how to spend their refunds, up from 64% last year.
