US Economy Confidence Plummets as Iran Conflict Drives Gas Prices Up

Americans' confidence in the US economy has taken a hit as gas prices surge again due to the escalating conflict between the US and Iran. The Conference Board's consumer confidence index fell to 90.8 in July from 92.2 in June, staying within the same 'tepid range' it's been in since January this year.

In late 2024 and early 2025, the readings were significantly higher, above 100. The uptick in gas prices has been a major contributor to this decline, with the average price for a gallon of gas rising to $4.10, up from $3.70 in June and over $4.50 in late April and early May.

The Iran conflict led to a shutdown of the Strait of Hormuz, through which about one-fifth of the world's oil travels, causing a spike in gas prices that accelerated inflation and reduced Americans' inflation-adjusted incomes.