According to a report from The Associated Press, U.S. consumer confidence inched higher in March despite soaring energy prices brought on by the war in Iran.
The Conference Board said Tuesday that its consumer confidence index rose modestly to 91.8 in March from 91 in February.
The board said that while rising costs due to tariffs and spiking oil prices induced by the conflict in the Middle East did not affect the topline confidence reading, there was increasing pessimism in other measures of the survey, including expectations of higher inflation.
Respondents’ comments about oil, gas and the war spiked and consumers’ 12-month inflation expectations surged to levels last seen in August 2025 when anxiety over tariffs peaked.
U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday as the war caused fuel prices to soar worldwide.
According to motor club AAA, the national average for a gallon of regular gasoline is now $4.02 — up more than a dollar before the war began. The last time U.S. drivers were collectively paying this much at the pump was nearly four years ago, following Russia’s invasion of Ukraine.
“This is the key concern as the war in Iran enters the second month — will the oil price shock turn into a demand destruction shock?,” wrote Heather Long, chief economist at Navy Federal Credit Union.
Long said that Navy Federal’s credit card data from March showed that consumers were still making purchases across categories even as gas prices rose. But she said that could change in the second quarter “as the worst of the inflation shock hits consumers.”
A measure of Americans’ short-term expectations for their income, business conditions and the job market fell 1.7 points to 70.9, remaining well below 80, a marker that can signal a recession ahead. It’s the 14th consecutive month that reading has come in under 80.
