Analysis of the Economic and Social Effects of the US-Iran Conflict

May 13, 2026, 16:51
GlobalPolitics

Introduction

The United States is currently involved in a long military conflict with Iran, which has led to high government spending and instability in the domestic economy.

Main Body

The Department of Defense has estimated that the direct cost of the conflict is about $29 billion over three months. Furthermore, global shipping has been disrupted because the Strait of Hormuz is blocked, which has caused international shipping costs and oil prices to rise. At the same time, the Bureau of Labour Statistics reports that job growth has slowed down, with only 181,000 jobs created last year, which is much lower than the average from 2020 to 2024. There is a clear difference between the government's claims and the actual data. President Trump has described this period as a 'golden age,' asserting that the stock market is at an all-time high and claiming that inflation is not a real problem. However, a CNN/SSRS poll shows that 77% of people believe the rising cost of living is caused by government policies, such as the use of tariffs. The administration emphasizes that their main goal is to stop Iran from developing nuclear weapons and suggests that energy prices will return to normal once the fighting ends. Recent data shows that people's purchasing power is decreasing. According to research by MoneyLion, an annual income of $100,000 is now considered lower-middle class in twelve states, with the limit reaching $116,476 in Massachusetts. Consequently, public opinion has turned negative; a Reuters/Ipsos poll shows a 64% disapproval rating for the president, while Gallup data indicates that 55% of adults feel their financial situation is getting worse due to the rising costs of energy, housing, and healthcare.

Conclusion

The United States continues to face economic tension due to high inflation and low approval for the president. Therefore, ending the conflict with Iran is the most important factor for stabilizing the market.

Learning

⚑ The 'B2 Power-Up': Mastering Logical Connectors

At the A2 level, you likely use simple words like and, but, and because. To reach B2, you need to use Logical Connectors to show the relationship between complex ideas. This article is a goldmine for this transition.

πŸ›  The 'Cause & Effect' Upgrade

Instead of saying "Prices went up because the strait was blocked," the text uses Consequently and Therefore.

  • Consequently β†’\rightarrow Use this to show a direct result of a previous fact.
    • Example from text: "...public opinion has turned negative; consequently, [a poll shows disapproval]."
  • Therefore β†’\rightarrow Use this to introduce a logical conclusion or a final decision.
    • Example from text: "Therefore, ending the conflict... is the most important factor."

βš–οΈ The 'Contrast' Pivot

B2 speakers don't just use 'but'. They use However and Furthermore to guide the reader through a debate.

  • However β†’\rightarrow This is the 'U-turn' word. It tells the reader: "I just told you one side, now here is the opposite side."
    • Text Logic: Government claims 'Golden Age' β†’\rightarrow However β†’\rightarrow Polls show people are struggling.
  • Furthermore β†’\rightarrow This is the 'Plus' word. Use it to add a more important or additional point to support your argument.
    • Text Logic: High spending β†’\rightarrow Furthermore β†’\rightarrow Shipping is disrupted.

πŸ’‘ PRO TIP FOR FLUENCY: Stop starting every sentence with the subject (e.g., "The prices are high... The people are sad..."). Start with these connectors to make your English sound like a professional analysis:

"Furthermore, the cost of living is rising. Consequently, many feel poorer. However, the government denies this issue."

Vocabulary Learning

conflict (n.)
A prolonged armed struggle between nations or groups.
Example:The conflict between the United States and Iran has escalated.
instability (n.)
The state of being unstable or unpredictable.
Example:Economic instability can lead to market volatility.
domestic (adj.)
Relating to a country's internal affairs.
Example:Domestic production increased during the pandemic.
estimated (v.)
To approximate or guess the value or amount.
Example:The Department of Defense estimated the cost at $29 billion.
disrupted (adj.)
Interrupted or disturbed the normal flow.
Example:Global shipping has been disrupted by the blockade.
tariffs (n.)
Taxes imposed on imported goods.
Example:Tariffs can raise the price of foreign products.
purchasing (adj.)
Relating to the act of buying goods or services.
Example:Purchasing power determines how much consumers can buy.
disapproval (n.)
The expression of disapproval or dissatisfaction.
Example:The poll showed a high level of disapproval for the president.
inflation (n.)
The rate at which prices for goods and services rise.
Example:Inflation erodes the value of money over time.
stabilizing (adj.)
Making something more stable or steady.
Example:Ending the conflict would help stabilize the market.