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The war had enormous implications for the economy. Commodity prices were driven extremely high due to investor uncertainty about the Middle East oil supply. It got so bad that Congress had to pressure traders to stop hoarding massive amounts of crude oil in the hopes that the supply would be disrupted and the price would escalate. These commodity price rises fueled speculation into other asset classes, such as housing and loans.

As always there were some short-term positive Keynesian stimulative effects by increased government spending, but a massive run-up of the deficit did increase the cost of servicing the national debt, which might otherwise have been directed into productive enterprises, rather than the wasteful Iraq war which achieved negative progress.