Roughly eight months ago, the U.S. and Israel launched a war of choice against Iran, ostensibly to keep that nation from building or otherwise acquiring nuclear weapons. The Iranians responded in part by taking control of the Strait of Hormuz, which allows them to choke off much of the world’s petroleum supply at their whim.
The war has cost Americans in a variety of direct and indirect ways. Most obviously, we’re paying substantially more to fill up our tanks than we were paying at the beginning of the year. The average cost of regular unleaded gas is about $4.35 per gallon, as compared to an average of just $2.98 on February 28 (i.e., the day that the war started). It’s more than $6 per gallon in California and $5 or higher in Washington, Hawaii, and Oregon.
The price of diesel fuel is even worse. Before the war, diesel averaged roughly $3.75. It is now about $6.30 per gallon, which means that the expense of everything from transporting goods by tractor trailers to busing millions of kids to school is becoming cost prohibitive.
Those are consumer costs, which are somewhat avoidable depending on one’s personal circumstances. For example, the cost to fill up your tank is still $0 if you drive an electric vehicle. However, all American taxpayers are on the hook for the military expenses to prosecute the war. The Pentagon recently reported that it has spent roughly $44 billion since hostilities with Iran began. This amounts to roughly $2,000 per American household — and there is reason to believe that the actual price tag is higher.
Further, some economists estimate that the total overall cost of the Iran war has exceeded $200 billion. While that’s only about one-fifth of Elon Musk’s net worth, it’s an unfathomable sum for all but a handful of Americans. And we haven’t even been fighting this war for an entire year.
But wait, there’s more! American taxpayers are about to start subsidizing the Iran war by indirectly supporting… Iran. That’s right. We’re about to bolster Iran by paying Russia for diesel fuel. How does that work?
First, consider the relationship between Russia and Iran, which began roughly 500 years ago. At times they have been allies; at other times they have had conflict. Yet, following the demise of the Soviet Union, they have been more or less aligned economically (including trade) and militarily (including wars). This includes being on the same side against conflicts with Afghanistan, Iraq, Syria, and Ukraine. Further, Western sanctions against both countries have brought Russia and Iran even closer together in recent years.
Indeed, Russia has been Iran’s primary supplier of weapons for roughly two decades. And, since the beginning of Russia’s war of choice against Ukraine, the U.S. has argued that Iran has been supplying Russia with drones that have wreaked havoc on military and civilian targets.
This leads us to President Donald Trump’s announcement last week that he had struck a deal with President Vladimir Putin to buy 300,000 tons of Russian diesel fuel. Allegedly to ease prices in the U.S., Trump’s decision likely violates a law, signed after Russia’s invasion of Ukraine in 2022, that bans Russian oil imports to the U.S. But why would something as mundane as a law be a deterrent to Mr. Trump?
Now comes the news, reported by Haaretz and Bloomberg, that Russia is providing much-needed missiles to Iran — even as the Iranians are producing their own missiles in the wake of U.S. strikes. While those strikes have diminished Iran’s weapons stockpiles and damaged its production capabilities, they are believed to be still very capable of massive missile launches.
By paying Russia for its diesel fuel (again, in violation of the law), American taxpayers are indirectly funding Iran in our war with… Iran.
To be clear, money is fungible. So, one cannot argue that the dollars that Russia will receive from the U.S. will be used to fund missiles to Iran. However, what one can argue is that American dollars will benefit the economies of two hostile nations, one of which we’re fighting in a war that has caused 21 American casualties and nearly 1,000 injuries.
Not to worry though. President Trump has solemnly vowed not to strike Iran again… until after our election next month. Thus, our tax dollars won’t be a subsidy for at least a few more weeks. Perhaps by then we’ll have our $5,000 bribe, I mean, reward for his party retaining its congressional power. That’s on top of the DOGE checks and tariff refunds that we’re certain to receive.
At some point. In the future.
Contact community leader Larry Smith at larry@leaf-llc.com.
