US National Debt Hits $40 Trillion as Iran War, Tax Cuts Fuel Economic Crisis

US federal debt has officially surpassed $40 trillion**, a record high, as borrowing accelerates outside pandemic levels and the Iran war drives up spending needs. Long-term Treasury yields hit a 19-year high on Tuesday, triggering market fears over fiscal sustainability and inflation . Treasury Secretary Scott Bessent’s intervention to “at least double” bond repurchases failed to lower yields and weakened the dollar. Gasoline prices have jumped about **40%** since the war began, diesel is at **$5.58/gallon, and the 30-year mortgage rate is 6.65% . The deficit for fiscal 2025 was 5.8% of GDP, with Trump’s tax cuts projected to add trillions more . Fed officials are holding rates steady despite inflation hitting 4.2% in May, fueling market criticism. Polls show Democrats leading on economic issues ahead of November’s midterms .