Rising Gas Prices Amid Iran Tensions Dampen US Economic Confidence

WHO:

AP News - Americans, President Trump, Democrats, Joe Biden, U.S. employers, Conference Board, AAA, Bureau of Labor Statistics.

WHAT:

AP News - The consumer confidence index fell to 90.8 in July from 92.2 in June.

AP News - The average price for a gallon of gas in the U.S. was $4.10.

AP News - U.S. employers added only 57,000 jobs last month.

AP News - The unemployment rate declined to 4.2% from 4.3% in May.

AP News - The price of a pound of ground beef reached $6.82 in June, which is 79% more than at the beginning of 2019.

AP News - Buying food to bring home has gotten 33% more expensive since the beginning of 2019.

WHERE:

AP News - The U.S., specifically referencing the Strait of Hormuz where Iran shut down access.

WHEN:

AP News - The consumer confidence survey was conducted from July 1 to July 22.

AP News - The inflation rate rose to 3.5% from 3% since Trump’s inauguration in January 2025.

AP News - Inflation jumped to 2.4% after the Iran war began on February 28.

WHY:

AP News - Americans’ confidence in the economy fell due to rising gas prices linked to increased fighting between the U.S. and Iran.

AP News - The rise in gas prices was attributed to Iran shutting down the Strait of Hormuz, affecting global oil supply.

HOW:

AP News - Americans are navigating higher grocery prices by couponing, comparison shopping, and cutting back on favorite foods.

(UPDATED July 28, 2026 19:30 UTC)

Consumer confidence in the U.S. has dropped to 90.8 in July, down from 92.2 in June, as rising gas prices and inflation weigh heavily on Americans. The average price for a gallon of gas is currently $4.10, and U.S. employers added only 57,000 jobs last month, although the unemployment rate did decline slightly to 4.2%. Amid these economic challenges, many Americans are adjusting their shopping habits by using coupons, comparison shopping, and cutting back on their favorite foods.