Elizabeth Warren demands answers on costs, economic impact of 'illegal and reckless war'

Sen. Elizabeth Warren is demanding answers to economic questions surrounding the Iran war, ticking off a list of queries about the impact on food, energy and retail costs, among other concerns, in a letter sent Friday to administration officials.

The liberal Democratic firebrand from Massachusetts ripped President Donald Trump, whom she said has “dragged the United States into an illegal and reckless war” that will hurt U.S. consumers, particularly in the middle and lower classes.

“I write today with grave concern that President Trump is weakening an already fragile economy, and will continue to do so, pouring billions of dollars into a war that will drive up prices, slow growth, and leave American families with higher costs while they are forced to foot the bill,” Warren said, according to a letter exclusively obtained by CNBC.

Warren is the ranking member on the Senate Banking, Housing and Urban Affairs Committee.

Since the war began three weeks ago, energy costs have soared. The benchmark global oil price is approaching $110 a barrel, with costs at the pump nearing $4 a gallon, or about $1 higher than a month ago, according to AAA.

Official government inflation figures are not available yet for March, but surging energy costs — and pass-through effects — are likely to boost prices at least as long as the fighting continues.

Warren delineated impacts on energy, food and retail prices, and said the war is having a broader impact in terms of economic uncertainty.

“The list of economic consequences goes on and on,” she wrote. “And it does not appear that the Trump Administration has any meaningful plan to keep prices low or prevent Americans from running low on the goods they need to work, go to school, and feed their families.”

A Treasury official said Warren did not speak up the last time gas prices spiked during former President Joe Biden's administration and called the senator's comments “laughable.”

“While Senator Warren will never pass up an opportunity to express her support for oppressive regimes, the Trump Administration will continue fighting to protect the safety and security of the American people,” a department spokesman said. “Any short-term disruption now will ultimately translate into longer-term economic gains for Americans – because there is no prosperity without security.”

The letter was addressed specifically to Treasury Secretary Scott Bessent, National Economic Council Director Kevin Hassett, and Pierre Yared, the acting chair of the Council of Economic Advisers.

Warren quizzed the recipients on whether their organizations had done costs analyses on the war's impact prior to its start or had projections on where they see prices going for the rest of 2026.

Earlier in the week, Federal Reserve Chair Jerome Powell did not directly address the war but said he expected energy prices would rise but wasn't sure of the longer-term impacts. The Fed voted to hold its benchmark rate steady, in part citing uncertainty over the war.