U.S. Consumers Spent $45 Billion More on Fuel Since Iran War Began

Com. Lower-income households absorbed the largest share of the added costs. Gasoline prices reached their highest Memorial Day levels since 2022. com reported that prices could climb to $5 per gallon if the Strait of Hormuz remains blocked.

The global oil supply shock created by the Iran war and closure of the Strait of Hormuz is affecting Americans disproportionately. Lower-income households are being hit the most as their purchasing power is being eroded by the extra fuel costs compared to a year ago.

At the other end of the spectrum, affluent Americans see their financial assets rise as the S&P 500 rallies to record highs. Two and a half months after the conflict began, the disparity between income groups continues to widen. com noted that rising energy costs are squeezing consumers and hurting purchasing power while wealthier Americans benefit from record-high stock markets.