War With Iran Is Hitting American Wallets Hard — Especially at the Gas Pump

For millions of Americans, the ongoing U.S. military conflict with Iran isn't just a foreign policy story — it's showing up in their bank accounts, their grocery bills, and their daily decisions about whether they can afford to fill up the tank. From Arkansas to Texas to Indiana, ordinary people are adjusting their lives around costs that keep climbing.

A new ABC News/Washington Post/Ipsos poll paints a sobering picture: four in ten Americans say they are worse off financially now than when President Donald Trump began his second term in January 2025. Nearly a quarter say they are actively falling behind. Half of those surveyed expect gas prices to climb even higher over the next twelve months, while another 15% think prices will simply stay at their current elevated levels.

The numbers translate directly into changed behavior. More than four in ten Americans — 44% — have cut back on how much they drive. A similar share, 42%, have reduced household spending in other areas. About a third have scaled back or scrapped travel and vacation plans entirely. For households earning under $50,000 a year, the squeeze is even tighter: more than half of those families say they have cut both driving and general household expenses.

Real People, Real Costs

Jacob Olson, a 28-year-old from Beebe, Arkansas, knows this pressure firsthand. After losing his warehouse manager job when the solar company he worked for went bankrupt, Olson started making custom wood products — storage racks and similar items — as a self-employed craftsman. The work means he drives often to reach customers, and every trip costs more than it used to with gas prices at record highs.

"One day at a time," Olson said. "One foot in front of the other. ... That's about the way to sum it up."

With two young children — a one-year-old and a newborn — Olson said there is simply no room in his budget for anything beyond the essentials.

"I don't really do anything, you know, for leisure or luxury anymore," Olson said. "It's all kind of just getting the bills paid ... I have a 1-year-old, and I just had another baby about a month ago, so I've got two little ones, and every day it's getting harder."

In Lubbock, Texas, Brenda Howard, 66, is navigating a different version of the same struggle. She doesn't own a car, which means every errand — including grocery runs — requires a rideshare service like Uber or Lyft. A single trip to the store now runs her about $30, money that comes directly out of a fixed budget. Howard works as a cleaner and said the retirement she imagined looks nothing like the one she is living.

"This is not the way I thought my retirement was gonna turn out," Howard said. "I never dreamed that it would be a day-to-day struggle, sometimes hour to hour."

Martha Davis, also 66 and from Tool, Texas, works as a caretaker for her disabled son. Medical appointments sometimes require her to drive up to 60 miles from home, a trip that used to be manageable but has become significantly more expensive.

"I used to get back and forth on like $20, $25, but now it's almost 70 bucks," Davis said.

Why Gas Prices Are So High Right Now

The root cause of the spike runs through a narrow body of water in the Middle East. Iran's government has blocked the Strait of Hormuz — a critical shipping lane through which roughly 20% of the world's traded oil normally flows — as a retaliatory measure in response to U.S. military action. That blockage has severely disrupted global oil markets, and those disruptions ripple quickly to the prices Americans see at the pump.

President Trump's public statements on the direction of gas prices have varied. In early April, he suggested prices might stay flat or increase before the midterm elections. On May 1, he said prices would come "tumbling down" once the military conflict was resolved. Iran is currently reviewing a U.S. proposal aimed at winding down the war, according to a spokesperson for Iran's foreign ministry.

Andy Breedlove, 51, of West Virginia, said he still supports Trump's overall performance while also acknowledging gas prices are too high. Breedlove, who is not working due to a disability, suspects prices will continue rising for as long as the conflict continues.

"But with the price of everything else, it kind of evens out a little," Breedlove said.

Jim Piper, 36, of Portage, Indiana, relies on a fixed income because of a disability, which makes inflation particularly damaging to his household. He said he has been doing worse financially since Trump's second term began, though he attributes rising prices largely to political gridlock between the two parties.

"I got to pay more, even though I'm not making more," Piper said.

Not everyone is holding back on criticism of the administration's approach. Olson questioned the transparency surrounding the decision to go to war.

"He hasn't made a clear statement on why ... we're actually participating at all," Olson said. "From what I know, there's been a lot of just lying and, you know, not being transparent, and ... a big lack of professionalism, which I don't appreciate coming from the president."

Christopher Mosley, 43, a former Walmart employee from Fort Smith, Arkansas, described Trump as "reckless" on foreign policy.

The financial strain felt by voters carries potential consequences well beyond household budgets. The ABC News/Washington Post/Ipsos poll found that 61% of Americans believe the decision to go to war with Iran was a mistake. With midterm elections approaching — a cycle in which Democrats are already seen as positioned to make gains — the economic mood of voters could prove to be a decisive factor in how those races play out.