U.S. Economy Grew 2 Percent in Early 2026 Even as War in Iran Began to Hit Energy Prices
The New York Times • • general
Key Points:
- The U.S. economy grew at an annual rate of 2 percent in the first quarter, demonstrating resilience despite rising global energy prices due to the war with Iran.
- The Commerce Department's data showed positive trends in private investment, consumer spending, and government expenditures before and during the early weeks of the conflict.
- The closure of the Strait of Hormuz caused oil prices to surge over 60 percent, with Brent crude reaching $120 per barrel, raising concerns about prolonged supply disruptions.
- Consumer spending, which makes up about 70 percent of GDP, remained stable, particularly among higher-income households, despite low consumer confidence and cautious hiring by employers.
