Global tensions involving Iran are unfolding at a difficult moment for American households. After several years of rising food, medical and housing costs, families are now facing higher gasoline prices as well. The uncertainty surrounding how long the instability may last is prompting many Americans to reassess their household budgets.

American Consumers Are Under Significant Pressure

Even before the conflict in Iran caused price spikes, recent market signals showed how American households are under pressure. Consumers continue to show signs of financial strain, with sentiment remaining low and 46% of households citing unaffordable prices as a major pressure point.

Use of buy now, pay later services for groceries is increasing, and 41% of BNPL users have been late on payments, which could hurt their consumer scores. Federal Reserve data also point to rising stress across major credit categories: the overall consumer loan default rate stands at 2.78% for all commercial banks; credit card delinquencies for accounts 90 days or more past due reached 7.10% in late 2024 and climbed to 20% to 23% in some low‑income areas by late 2025; auto loan delinquencies rose to 2.90% in the third quarter of 2024 and continued increasing in 2025; serious student........

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