U.S. Consumer Confidence Drops as Iran Conflict Spikes Gas Prices

U.S. consumer confidence fell to 90.8 in July from 92.2 in June, according to The Conference Board. This decline follows a surge in gas prices, which averaged $4.10 per gallon on July 28, fueled by escalated military fighting between the United States and Iran.

Economic instability began in late February when the Federal government of the United States and Israel attacked Iran. In response, Iran shut down the Strait of Hormuz, disrupting approximately one-fifth of global oil travel. This closure accelerated inflation, which rose to 3.5% from 2.4% at the start of the conflict on February 28, and reduced inflation-adjusted incomes.

Americans are facing further pressure from high grocery costs, with food prices rising 33% since 2019. Specifically, Bureau of Labor Statistics data shows ground beef prices have increased by 79% since 2019. These combined economic pressures arrive less than 100 days before the midterm elections, potentially impacting President Donald Trump and Republicans.