Sen. Sanders: Disastrous War on Iran Destroying U.S. Economy
WASHINGTON (Dispatches) – Senator Bernie Sanders on Saturday warned that Donald Trump’s “illegal and disastrous” war against Iran is “destroying our economy,” as a wave of economic data from American and international sources confirmed the devastating financial toll of the seven-month terrorist aggression.
“Not only has Donald Trump’s illegal and disastrous war against Iran resulted in thousands of casualties, it is also destroying our economy,” Sanders wrote on his official X account.
“The national average price of gasoline has never exceeded $4 a gallon on the Labor Day weekend. Today, it is $4.15. We must end this war right now.”
The Vermont senator’s warning came as Americans headed into Labor Day weekend with the national average price of diesel hitting an all-time record of $5.85 per gallon on Friday, surpassing the previous record of $5.819 set in June 2022.
Since the war began in late February, when diesel averaged about $3.71 a gallon, prices have surged roughly 55 percent. Gasoline has also
climbed to around $4.15 per gallon — the highest ever recorded for September and up nearly a dollar from last year’s average.
The diesel crisis extends far beyond the fuel pump. Diesel directly fuels trucking, mining, agriculture, construction and industrial production — meaning higher diesel costs translate rapidly into higher prices for food, clothing, furniture and virtually all consumer goods.
The pain is already being felt across industries. More expensive fuel is increasing bills for businesses across sectors, with some already passing costs to consumers through added fees on online orders and packages. Farmers face a particular squeeze, especially with the peak harvest season for corn and soybeans — the largest U.S. crops and a period of highest fuel demand — still ahead.
“The national average price of gasoline will probably hit $4.03 on Labor Day, far surpassing the previous record of $3.83 per gallon set in 2012,” said GasBuddy analyst Patrick De Haan.
“Gasoline, while not at all-time records, is at its highest level ever recorded this late in the calendar year, meaning Americans could for the first time ever see a national average price of gasoline above $4 per gallon on Labor Day.”
One of the most immediate strains falls in the grocery aisle, particularly with produce, meat and other perishable foods that need to be hauled in and restocked frequently — or even harvested using diesel-powered farm equipment. It can take time for all of those costs to trickle down to store shelves, but analysts warn the impact is coming.
Currently, few operational and policy levers can be pulled to boost fuel supplies. U.S. refinery utilization currently stands at 98%, the highest level since 2018. The government has already extended the Jones Act waiver, allowing easier fuel shipments between U.S. ports, and ended summer-blend gasoline requirements early in an attempt to cap prices.
U.S. gasoline inventories fell by 1.2 million barrels last week to 205.7 million barrels, according to the Energy Information Administration, compared with the five-year average for August of 217.6 million barrels.
Colorado, along with Utah, Idaho, Montana, Wyoming, and North Dakota, has recorded some of the steepest price gains since the war started. California, Hawaii, and Washington currently have the nation’s highest average gasoline prices.
“It’s completely out of control,” Randi O’Brien, 57, said while filling up her truck at a Phillips 66 near Evergreen, Colorado. “I can only afford $15 worth of gas right now,” said O’Brien, who drives roughly 40 minutes round trip each day to work at Home Depot.
The energy shock has ricocheted through global bond markets. The 10-year Treasury yield, the main benchmark for mortgages, auto loans and credit card debt, has traded above 4.77 percent this week. The longer-dated 30-year Treasury yield, more sensitive to geopolitical events, has remained elevated above 5.2 percent.
Federal Reserve Governor Christopher Waller said Thursday he is leaning toward keeping interest rates unchanged at the central bank’s next policy meeting, though inflation remains “significantly above” the Fed’s 2% target. The market remains divided, with traders putting roughly even odds on a rate hike or a pause at the September 15-16 meeting.
The crisis is not confined to American shores. European natural gas prices have more than doubled since the war began, climbing to their highest level since January 2023. Dutch TTF futures, the European benchmark, traded around €72-75 per megawatt-hour this week, marking a fourth consecutive weekly gain.
EU gas storage facilities are around 65% full — the lowest for this time of year since records began 15 years ago — well below the five-year seasonal average of 82%. Germany and the Netherlands have already communicated that they will not reach their respective storage targets of 70% and 80%.
The shipping paralysis in the Strait of Hormuz — through which roughly one-fifth of global LNG trade typically passes, primarily from Qatar — is hampering Persian Gulf LNG supplies to Europe and Asia. The disruption has tightened the global LNG balance simultaneously, affecting both markets rather than in isolation.
“We must end this war right now,” Sanders demanded, a sentiment echoed by a growing chorus of analysts, economists and media outlets documenting the conflict’s devastating economic consequences.