‘I don’t think about Americans’ financial situation’ says Trump, as Iran war drags on – and economic worries persist with it

The statement came the same morning the Bureau of Labor Statistics (BLS) reported that inflation hit 3.8% in April, with energy prices jumping 17.9% annually and gasoline surging 28.4% over the past year. (2) According to AAA, the national average for a gallon of regular gas has climbed to $4.51 as of May 13. (3)

For Americans already squeezed by years of elevated prices, the president's comment landed like a gut punch. But understanding how we got here — and what you can actually do about it — is more useful than waiting for Washington to change course.

How the Iran war is impacting your wallet

The Iran war began in late February (4), and the economic impact was almost immediate. The Strait of Hormuz — a chokepoint through which nearly 20 million barrels of oil pass daily (5) — has been effectively shut since early March (6).

As a result, the cost of crude oil spiked above $100 a barrel and gas prices soon soared to the highest rate since 2022 (7). And the pain doesn't stop at the pump. According to the BLS, the cost of food at home rose 0.7% in a single month. Beef prices are up 14.8%, (8) year over year, and airline fares have jumped 20.7% annually (2), in part because jet fuel costs are being passed straight to travelers.

"Consumers are currently trapped in a 'double squeeze,'" said Stephen Kates, a certified financial planner and financial analyst. "Wrestling with both the acute pain of the gasoline price spike and the slow rise in other core budget items." (8)

Economists warn the pain may not ease quickly even if the conflict winds down. Mark Zandi, chief economist at Moody's Analytics, told CBS News (9) that even if the conflict is resolved soon, the strain could carry through the summer.

5 ways to stretch your money further

You can't control the oil markets or foreign policy, but you can make smarter financial moves. Here are five practical tips for stretching your budget:

1. Batch your errands to reduce driving

Every trip in the car costs more than it did a year ago. Before you head out, map your stops and combine them into a single route. Apps like Google Maps let you add multiple destinations, so you can optimize your route to avoid back tracking.

2. Use a budgeting app

If you're not already using a budgeting app, now is a good time to start. Tracking where every dollar goes is one of the simplest ways to find areas you can trim. Sometimes just realizing how much you're spending on things that aren't true 'needs' can help you make smarter choices.

3. Start a small garden

If you have space, try to grow a few of the produce items you eat the most. You don't even need a backyard for this — growing a few herbs you use regularly like basil, oregano, and mint, can help reduce your food costs and last minute trips to the grocery store. If you have a patio, a few tomato plants can give you a decent yield with minimum effort. If you don't have a yard, see if your town rents plots in a community garden.

4. Plan meals around weekly sales

Check your grocery store's weekly circular before you plan your meals, not after. Building your menu around what's on sale, rather than shopping for a predetermined list, is one of the most effective ways to cut the food your budget without sacrificing much.

5. Rethink how you get around town

Carpooling, biking, and walking when possible can cut your gas consumption significantly. While taking the car might be faster for that trip to pick up milk from the grocery store, walking or biking is free — and you'll get in a workout at the same time.

The economic impact of Trump's so-called 'miniwar' (10) is real. Trump's admission that Americans' financial pain isn't a consideration in his negotiations may be jarring, but it's also clarifying: prices are unlikely to come down soon. The only way forward is to look for practical ways to control what you can — your budget.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

The New York Times (1),(10); U.S. Bureau of Labor Statistics (2); AAA (3); U.S. Department of State (4); U.S. Energy Information Administration (5); BBC (6); Trading Economics (7); CNBC (8); CBS News (9)