Since the U.S. and Israel attacked Iran on Feb. 28, U.S. gas prices have climbed from just under $3 to about $4.50 a gallon, inflation has risen from 2.4% to 3.4%, and average 30-year mortgage rates have topped 7%, NBC News reports.
The Congressional Budget Office estimated the war added at least 0.5 percentage points to inflation; higher energy prices were the main driver of the rise. Diesel reached a record $6.52 a gallon, up from less than $4 before the war. The 10-year Treasury yield climbed from 3.96% to nearly 5%, with inflation and borrowing for AI investments adding pressure, according to ING’s Padhraic Garvey. The Fed raised interest rates last week for the first time since 2023.
The conflict was approaching its seventh month, and Trump suggested Tuesday that a deal could come after November’s midterm elections. The economic picture also included record median household income in 2025, a record-low poverty rate, stocks near an all-time high and low unemployment. An NBC News poll found the share saying Trump had helped the economy fell from 35% in March to 26% in September. The White House called the disruptions temporary and said it remained focused on its long-term economic agenda.