Iran war and Trump tariffs fuel higher gas prices and renewed inflation risks

ConsumerAs gas prices and mortgage rates rise, the consumer affordability crisis returnsThe Iran war is costing the average U.S. household over $1,200, as the cost of gas and groceries rises and mortgage rates hit levels not seen in a year.Listen to this article with a free profile00:0000:00Add NBC News to GoogleWhy a Record Number of Young Adults Are Moving Back Home03:35Get more newsLiveonShareAdd NBC News to GoogleJuly 24, 2026, 9:24 PM EDTBy Steve Kopack and Christine RomansThe affordability crisis is revving up again.Subscribe to read this story ad-freeGet unlimited access to ad-free articles and exclusive content.The war in Iran and President Donald Trump’s global tariff agenda are pushing prices higher across the country and raising fears of renewed inflation.Gas prices are surging again, hitting $4.10 per gallon on Friday and are poised to climb higher. These rising costs at the pump are a direct result of the jump in global oil prices. Brent crude oil briefly surged above $100 per barrel this week for the first time in two months, after a reported attack on at least two tankers transiting the Red Sea. U.S. crude oil has surged too, rising as high as $92 per barrel this week. The rising fuel prices, in turn, have put financial markets back on edge over another potential spike in inflation, even though it eased last month to 3.5%. U.S. Treasury yields, which can serve as a bellwether for inflation expectations, have started rising again. On Friday, the 10-year U.S. government bond yield hovered just below 4.7%, its highest level since January 2025.Those yields also guide consumer borrowing rates. The average interest rate on a 30-year U.S. mortgage rose to 6.85% on Thursday, its highest level since June 2025, although it ticked down to 6.81% on Friday.All of these rising prices and interest rates mean that pressure is mounting again on consumers.Mark Zandi, chief economist at Moody’s Analytics, told NBC News that the war is costing the average household more...