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The U.S. economy before and after the Iran war, in five charts
NBC News • • business
Key Points:
- Since the U.S. and Israel attacked Iran in late February, the American economy has shifted from a trajectory of lower inflation and cheaper gas to higher energy costs and rising inflation.
- Gas prices have surged from under $3 per gallon before the war to about $4.50, with diesel prices reaching record highs above $6.50, driving inflation and borrowing costs upward.
- Inflation has increased from 2.4% to 3.4%, prompting the Federal Reserve to raise interest rates for the first time since 2023, with the war estimated to have added at least 0.5 percentage points to inflation.
- The 10-year Treasury yield has risen from 3.96% to nearly 5%, reflecting increased inflation expectations and economic uncertainty linked to the conflict.
- Despite strong stock market performance, record household incomes, and low unemployment, consumer sentiment and presidential approval have declined, complicating President Trump’s efforts to highlight positive economic achievements ahead of the midterm elections.
