Global markets plunged last week, hitting a new low for the year, as investors worried about how long the Iran conflict will last. Energy prices surged, with gas prices reaching $3.98 per gallon, a dollar higher than a month ago, and oil prices soared to an international benchmark of $113 per barrel. This led economist Tom Porcelli to warn that elevated oil prices could cancel out tax cuts and stimulus measures.
Experts, including Christine Lagarde of the European Central Bank, warned that the global economy is at risk due to the ongoing conflict. Consumer sentiment fell nearly 6% to its lowest level since December, according to a survey by the University of Michigan. Mortgage rates spiked to nearly 6.4%, making it harder for potential buyers to enter the market.
The war in Iran has created uncertainty around the world, with experts warning that it’s not just an energy shock but a larger shock with ripple effects. Small businesses are feeling the impact, and consumers are losing confidence in the economy. The Federal Reserve left interest rates unchanged despite Trump’s calls for a cut due to economic uncertainty.
Source: https://www.washingtonpost.com/business/2026/03/27/consumer-sentiment-economy-gas-prices