Affordability concerns are weighing harder on consumer sentiment as Iran war drags on

Thu, April 30, 2026 at 12:26 AM UTC

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Gas is pumped at a Costco Warehouse. (Gene J. Puskar/AP)

Affordability continues to be a top concern for Americans, as the war with Iran drives gas prices to a four-year high.

"If prices continue like this, I’d probably say like six or seven months before I probably have to start taking the bus," one driver said.

And consumers are set to see more of that trickle into other parts of the economy.

"It's really difficult to understate how integrated oil is into various parts of the economy," said economist Abby Hall.

Travelers are already seeing higher airfares due to the rising cost of jet fuel, and experts predict higher grocery prices coming soon.

"All the prices of anything you buy that comes out of the ground is going to be more expensive because so much of it, as a global commodity, flows through the Strait of Hormuz," said Henrietta Treyz, director of economic policy at Veda Partners.

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A new consumer confidence survey from the Conference Board showed Americans feeling marginally better about the present economic situation, but far worse about what’s ahead.

"We see a very, very clear divide. Where consumers are feeling okay about today, but are decidedly pessimistic about what is likely to happen tomorrow," Hall said.

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That fact, driven by fears of increasing inflation, are also weighing on the Federal Reserve.

The central bank opted to keep interest rates unchanged again on Wednesday.

"The economic outlook remains highly uncertain and the conflict in the Middle East has added to this uncertainty," Federal Reserve chair Jerome Powell said of the impacts of the war with Iran. "We really won't know until we know. So fortunately, we're in a good place to wait, wait and let things develop."

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Source: “AOL Breaking”