Iran war: Rising gas prices hitting US household finances

Rising gasoline prices are already starting to bite US. household ​finances and Americans overwhelmingly expect fuel costs will keep climbing as President Donald Trump’s war with Iran crimps ‌global oil supplies, a new Reuters/Ipsos poll found.

Some 55% of respondents in the Tuesday-through-Thursday poll said their household finances had taken at least “somewhat” of a hit from the increases in gas prices. Among those seeing an impact, 21% said their finances were affected “a great deal.”

The average price of gasoline ​in America has surged by nearly a dollar per gallon since February 28 when the U.S. and Israel ​attacked Iran, prompting Iranian counterstrikes on the energy installations of U.S. allies and the effective closure ⁠by Iran of the Strait of Hormuz, which carries one-fifth of the global oil supply.

The economic risk is so dire ​that the Trump administration has mulled deploying thousands of additional U.S. troops to ensure safe passage of oil tankers through the ​strait, an endeavor some officials have warned might require deploying U.S. troops to Iran’s shoreline.

AMERICANS EXPECT GAS TO RISE

Some 87% of Americans consider it likely that gas prices will rise further over the coming month. The poll found that most Americans also expect the U.S. will deploy U.S. troops for ​large-scale ground operations in Iran, though few support the idea.

Trump returned to office last year promising to fix years of ​high inflation and ignite an economic boom. He spent much of the last year asserting he had done this, saying last month the ‌country ⁠was living in a “golden age.” Even before the war, few Americans agreed.

Trump on Thursday appeared to acknowledge his role in the surging costs, saying, “The economy was great … We had great everything. And I saw what was happening in Iran and I said, ‘I hate to make this excursion, but we’re going to have to do it.'”

The surge could hurt Republicans’ chances of defending their slim ​majorities in Congress in this ​year’s midterm elections. Respondents ⁠to the poll said that the cost of living would be the top issue influencing their vote in November.

DISAPPROVAL ON COST OF LIVING

Some 63% of Americans disapprove of Trump’s handling of ​the cost of living in the U.S., up from 41% shortly after he returned to ​the White House. ⁠His approval rate on the issue, at 29%, has fallen from 35% in the first days of his administration.

Trump’s polling on the cost of living has been a persistent vulnerability since he returned to the White House, as he has enacted steep tariffs ⁠on imports ​that have increased prices of consumer goods.

Only 35% of respondents in the ​poll said Trump was doing a good job on the U.S. economy.

The survey, which was conducted online, gathered responses from 1,545 U.S. adults nationwide and had ​a margin of error of about 3 percentage points.