When United States President Donald Trump delivered his State of the Union address, he confidently told the country: “The roaring economy is roaring like never before". However, less than two weeks later, the escalating conflict involving Iran is beginning to collide with Trump’s core political promise—delivering a strong economy and lower living costs for Americans.
Recent economic indicators, including job losses, rising gasoline prices and market volatility, are raising concerns that the war could undermine the administration’s economic narrative ahead of key elections.
An analysis by Associated Press reported that Trump’s claim of a “roaring economy" is facing an early test in 2026 as new economic data shows job losses, rising fuel prices and falling stock markets. February’s labour report showed 92,000 jobs lost, while the Dow Jones Industrial Average has slipped about 5 per cent after earlier highs, signalling growing uncertainty in financial markets.
Gasoline prices have jumped 19 per cent in a month, driven partly by rising oil prices linked to the conflict in Iran. Oil has climbed above $100 per barrel, fuelling concerns that inflation could rise again after a period of easing.
Economists warn that these developments complicate the administration’s messaging that inflation and affordability are under control.
The biggest economic channel through which the conflict affects the United States is energy prices.
The war with Iran has disrupted energy flows through the Strait of Hormuz—a critical maritime route that carries roughly 20 per cent of the world’s oil supply. Shipping disruptions and security concerns in the region have pushed oil prices sharply higher.
Analysts speaking to PBS say sustained oil prices above $100 could trigger another inflation spike by raising transportation, manufacturing and food costs. A prolonged disruption could also slow economic growth globally.
In the US, gasoline prices have already climbed significantly, becoming one of the most visible economic effects for voters.
Rising Gas Prices = Political Risk?
Source: World News in news18.com, World Latest News, World News
