A month after the U.S. military action against Iran, American consumers are facing a tough situation with rising gas prices, increasing interest rates, and a declining stock market, as reported by Axios.
The average cost of gasoline in the U.S. jumped by $1 within a month, spurred by a rise in oil prices linked to Operation Epic Fury, which started on February 28. Just before this operation, the average price of a gallon was about $2.98. Now, it has soared to around $3.98, according to the American Automobile Association (AAA).
Before the conflict escalated, approximately 20% of the world’s oil traveled through the Strait of Hormuz. However, once hostilities began, traffic there dropped significantly, which contributed to the surge in crude oil prices. Analysts predict that the economic repercussions will linger long after the conflict subsides.
Mortgage rates in the U.S. have seen an uptick for four consecutive weeks since the outbreak of the conflict, now averaging 6.38%, the highest since September 2025. Only two days prior to the war, rates stood at 5.98%.
The rise in oil prices has led analysts to believe that the Federal Reserve will likely keep interest rates steady for the foreseeable future. Traders in the futures market are now predicting a 52% chance of an interest rate hike by year’s end.
The stock market has also taken a hit, with a reduction of over $3 trillion in market capitalization since the conflict began. The major indexes have all dropped since February 28. In the past month, the S&P 500 fell by 7.4%, the Dow Jones Industrial Average by 7.8%, and the Nasdaq Composite dropped by 7.6%.
Officials from the Trump administration are trying to justify the military action as it affects consumers economically. Treasury Secretary Scott Bessent mentioned recently that Americans would eventually recognize that the temporary price spikes are a small price for long-term security.
The recent conflict has also provided an opportunity for Democrats in the upcoming midterm elections as housing affordability becomes a critical issue. After previous electoral victories linked to this theme, candidates like Florida Rep. Emily Gregory emphasize that the rising cost of living is a core concern for voters.
Gregory stated, “Everyone is feeling the affordability crisis, and when Florida families are in need, the last thing they need is $4 gas,” highlighting the real impact on everyday Americans.
