Rising gas prices could be the straw that breaks consumer spending

This story was first published by Digiday sibling Modern Retail.

The escalating conflict among the U.S., Israel and Iran shows no signs of stopping soon, and that is being felt across the global energy markets. In recent days, prices at pumps across the U.S. jumped by about 30% and are headed toward $4 per gallon.

The rising fuel costs have experts predicting a rapid ripple effect on the U.S. retail industry, as concerns over transportation signal pressure on already-squeezed shoppers. With retailers still grappling with the effects of tariff-related inflation, shoppers could start to pull back on discretionary purchases as they prioritize fuel and necessities. For economic experts, the longer the war goes on, the more likely these outcomes are. This is especially concerning, as people head into the summer travel season, when gas prices have historically been higher.   

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