Former House Speaker Nancy Pelosi accused Republicans of prioritizing wealthy interests while shifting financial burdens onto working families through rising costs and military spending.

Pelosi posted on X on Monday that Republicans were making citizens pay more so the rich could cash in. She highlighted skyrocketing costs, tax breaks for the wealthy, and billions spent on President Donald Trump’s military campaign against Iran.

Democratic Criticism Widens

Other Democratic leaders joined the criticism ahead of the 2026 midterm elections. Rep. Ted Lieu (D-Calif.) warned that gas, grocery, and utility prices had risen while the administration focused on projects bearing Trump’s name.

Sen. Elizabeth Warren (D-Mass.) cited July labor-market data showing 23,000 jobs lost and wage growth at its slowest pace in five years. She argued that rising costs were shrinking workers’ purchasing power.

Sen. Mark Kelly (D-Ariz.) criticized Republican health care proposals, accusing them of gutting programs to give handouts to billionaires. Gov. JB Pritzker blamed Trump’s tariffs and the Iran war for higher grocery, gas, and medication costs.

Economic Impact of Conflict

The Iran war continued to pressure global and US economies through higher energy costs and military spending. Oil prices briefly neared $120 a barrel before easing. The Pentagon estimated the war had cost $37.5 billion and sought nearly $67 billion to $70 billion more in supplemental funding.

Moody’s economist Mark Zandi estimated the conflict had cost US consumers $100 billion, or about $750 per household. He warned that higher energy costs were putting increasing pressure on lower-income families.

Six months into the Iran war, global markets have stabilized despite persistent energy shocks. Oil prices remain roughly 20% above prewar levels, driving higher costs for travel and food while boosting defense sector revenues. Businesses linked to President Donald Trump’s family have recorded financial gains from these shifts.

Market Recovery and Energy Costs

The initial market shock in late February saw the S&P 500 post its worst month since 2022. Since bottoming in late March, the Dow Jones Industrial Average has gained nearly 19%, the S&P 500 almost 22%, and the Nasdaq Composite 27%.

Energy markets continue to reflect supply disruptions. Brent crude peaked at nearly $120 a barrel, up from about $72 before the war. Jet fuel costs are expected to average 70% more than in 2025, prompting airlines like Lufthansa Group to cut 20,000 short-haul flights. Iranian oil loadings fell to 248,000 barrels a day in August from about 1.85 million barrels a day in March and April, though non-Iranian Persian Gulf flows have recovered.

Defense Spending and Trump Holdings

Defense contractors are securing major deals to replenish munitions. The Pentagon awarded Raytheon, a unit of RTX Corp., two contracts worth a combined $1.28 billion. Powerus, preparing for an IPO with Eric Trump and Donald Trump Jr., won an Air Force contract with a ceiling of up to $90 million for drone interceptors.

Private equity firm 1789 Capital Management, joined by Donald Trump Jr., holds stakes in defense firms benefiting from the war. Anduril received approval for up to $2 billion in drone sales to Kuwait. Space Exploration Technologies Corp. is providing satellite services for U.S. drones.

President Trump’s portfolio, managed by outside managers, includes holdings in Lockheed Martin Corp., General Dynamics Corporation, and Northrop Grumman Corp. Democrats estimate his oil and gas holdings in ExxonMobil Holdings Corp., Chevron Corp., Occidental Petroleum Corp., and ConocoPhillips increased in value by as much as $15.5 million.

Clean Energy and Food Pressures

Higher energy costs are accelerating alternative adoption. Electric vehicle sales rose 110% year over year in Singapore, 180% in New Zealand, and 300% in Colombia. Worldwide, EVs are projected to account for 29% of vehicle sales in 2026, up from 25% last year.

Fertilizer prices peaked in April at 44% above prewar levels, raising concerns about future harvests. The World Food Programme warned that tens of millions could face hunger due to higher oil and fertilizer costs, particularly in Asia and Africa.