3 ways the Iran war is hitting Americans’ pocketbooks

The recent outbreak of the Iran war has had a significant impact on the U.S. economy, with repercussions being felt across various sectors. According to Matt Schulz, chief consumer finance analyst at LendingTree, the effects of the war are widespread and are affecting everything from mortgage rates to travel and grocery prices. This is especially challenging for Americans who are already on tight budgets, as they now have to deal with additional financial strain.

One way in which the war is impacting U.S. households is through travel and transportation. The average price of gas in the U.S. has skyrocketed to $4.09 a gallon, up more than $1 from before the war. This increase not only hits motorists at the pump but also has broader implications, potentially affecting the larger tax refunds that many Americans are expecting this year. Diesel prices have also surged, reaching $5.53 a gallon, causing concerns for industries reliant on diesel, such as farming and trucking.

Furthermore, higher global oil prices have led to an increase in airfare costs, with average global airfare reaching $465, up 24% compared to the previous year. Airlines like JetBlue and United have also raised their baggage fees, adding to the financial burden on consumers. A recent study by LendingTree found that nearly a third of Americans have reduced their spending and savings due to higher fuel costs, highlighting the strain on household budgets.

Another area feeling the impact of the Iran war is shipping costs. Delivery companies have begun adding fuel surcharges as a result of rising global oil prices, which are expected to be passed on to customers. The United States Postal Service, Amazon, FedEx, and UPS have all announced fuel surcharges on their services, further adding to the cost of goods and services for consumers.

In the housing market, mortgage rates have been on the rise for five consecutive weeks, reaching 6.46% for a 30-year fixed mortgage. This is the highest level since September 2025 and presents a challenge for potential homebuyers. Mortgage rates are closely tied to U.S. government bonds, which have seen yields increase as investors anticipate higher inflation due to the Iran war. The Federal Reserve is monitoring the situation and has indicated that it will hold rates steady as it assesses the economic impact of the war.

Overall, the Iran war is having a profound impact on U.S. households, affecting everything from transportation costs to mortgage rates. With no immediate relief in sight, Americans are bracing themselves for a period of financial uncertainty as they navigate the challenges brought on by the conflict.