War With Iran Is Hitting American Wallets Hard — And Families Say They're Barely Keeping Up

For millions of Americans, the ongoing U.S. military conflict with Iran isn't just a foreign policy story — it's showing up directly in their bank accounts, at the gas pump, and in the grocery aisle. New polling data and real accounts from everyday people paint a picture of growing financial stress that is reshaping how families spend, travel, and plan for the future.

A survey conducted by ABC News, The Washington Post, and Ipsos found that 4 in 10 Americans say they are worse off financially than they were when President Donald Trump began his second term in January 2025. Nearly one in four say they are falling behind financially. Half of those surveyed expect gas prices to climb even higher over the next twelve months.

The war's most immediate economic impact has been felt at the gas pump. Iran's decision to block the Strait of Hormuz — a critical waterway through which roughly 20% of the world's traded oil normally flows — has caused significant disruptions to global oil supplies, pushing fuel costs up sharply for American consumers.

"Every Day It's Getting Harder"

Jacob Olson, a 28-year-old from Beebe, Arkansas, knows that pressure firsthand. After losing his job as a warehouse manager when the solar company he worked for went bankrupt, Olson started his own business building custom wood projects like storage racks. The work requires driving to customers regularly, which means high gas bills are a constant drain on his budget.

"One day at a time," Olson said. "One foot in front of the other. ... That's about the way to sum it up."

With two young children — one just a month old — Olson said there is no longer room in his budget for anything beyond basic necessities.

"I don't really do anything, you know, for leisure or luxury anymore," Olson said. "It's all kind of just getting the bills paid ... I have a 1-year-old, and I just had another baby about a month ago, so I've got two little ones, and every day it's getting harder."

The poll backed up what Olson is experiencing personally. More than 4 in 10 Americans said they have cut back on driving (44%) or reduced household expenses (42%) in response to higher fuel costs. About a third — 34% — said they have changed or cancelled travel and vacation plans. For households earning less than $50,000 per year, those numbers are even higher, with more than half saying they've cut both driving and spending.

Retirees and Fixed-Income Americans Among the Hardest Hit

Brenda Howard, 66, lives in Lubbock, Texas, and works as a cleaner. She doesn't own a car, so she relies on rideshare apps like Uber and Lyft to get around. With gas prices rising, those services have become significantly more expensive — a simple trip to the grocery store now costs her around $30.

"This is not the way I thought my retirement was gonna turn out," Howard said. "I never dreamed that it would be a day-to-day struggle, sometimes hour to hour."

Martha Davis, 66, from Tool, Texas, faces a similar challenge. She cares for her disabled son and must travel long distances — sometimes up to 60 miles — to reach medical appointments. The cost of those trips has surged.

"I used to get back and forth on like $20, $25, but now it's almost 70 bucks," Davis said.

Jim Piper, 36, from Portage, Indiana, lives on a fixed income due to a disability. He said inflation is especially damaging when income doesn't rise along with prices.

"I got to pay more, even though I'm not making more," Piper said.

Mixed Views on Who's to Blame

Americans' opinions on the financial squeeze vary, even among those who acknowledge things have gotten harder. Andy Breedlove, 51, from West Virginia, said he believes Trump is performing well in his second term while also acknowledging that gas prices are uncomfortably high.

"But with the price of everything else, it kind of evens out a little," said Breedlove, who is not working due to a disability.

Breedlove said he expects gas prices to keep rising as long as the war with Iran continues. Piper, meanwhile, said he blames political gridlock between the two parties for the economic difficulties, not any single leader.

Others were more pointed in their criticism. Olson questioned the administration's transparency about why the country is engaged in the conflict at all.

"He hasn't made a clear statement on why ... we're actually participating at all," Olson said. "From what I know, there's been a lot of just lying and, you know, not being transparent, and ... a big lack of professionalism, which I don't appreciate coming from the president."

Christopher Mosley, 43, a former Walmart employee from Fort Smith, Arkansas, described Trump as "reckless" on foreign policy.

The ABC News/Washington Post/Ipsos poll found that 61% of Americans believe the Trump administration's decision to go to war with Iran was a mistake. Meanwhile, 15% of those surveyed said they expect gas prices to remain roughly the same over the next year, while the other half anticipate further increases.

Trump's own statements on gas prices have shifted over time. In early April, he suggested prices might hold steady or rise before the midterm elections. By May 1, he said prices would come "tumbling down" once the conflict ended. Iran is currently reviewing a proposal from the U.S. government aimed at winding down the war, according to a spokesman for Iran's foreign ministry.

The financial strain being felt across the country is expected to carry weight heading into the midterm elections, a cycle in which Democrats are already seen as well-positioned to make gains in Congress.