economy
In 8 weeks, the Iran war has dented the U.S. economy. The damage could linger, economists say.
April 24, 2026 / 4:27 PM EDT / CBS News
TL;DR
- The Iran war has driven gas prices above $4 a gallon and inflation to its highest in nearly two years.
- Disruptions to the Strait of Hormuz have increased oil prices, affecting consumers and travel costs.
- Economists predict lingering financial impacts from the war, with oil prices remaining elevated until at least 2026.
- Higher energy and diesel prices are increasing transportation costs, leading to higher prices for goods like groceries.
- Fertilizer production disruptions due to constrained natural gas supplies could also impact food prices.
- Consumer spending may decrease due to higher energy costs, potentially slowing GDP growth.
- Other economic headwinds include the impact of artificial intelligence on the labor market and lingering tariff policies.