WASHINGTON, D.C. — Consumer sentiment in the United States fell to a record low in April, driven by rising energy costs and economic uncertainty tied to the ongoing Iran conflict.
A new University of Michigan survey found confidence dropped nearly 11 percent from March, continuing a decline that began after U.S. and Israeli military operations in Iran disrupted global oil markets. The closure of the Strait of Hormuz, a critical shipping route, contributed to higher gas prices and broader economic strain.
Survey director Joanne Hsu noted the data was collected before President Donald Trump announced a temporary ceasefire with Iran, which has since led to a modest rebound in stock markets and expectations for easing fuel costs.
The report found declines across all demographic groups, reflecting widespread concern. Personal financial outlooks dropped by 11 percent, while expectations for business conditions over the next year fell by 20 percent.
Inflation expectations also rose, with more consumers anticipating price increases in the coming year. Many respondents cited geopolitical instability and supply disruptions as key drivers.
Economists suggest sentiment could improve if oil flows stabilize and prices decline, but uncertainty remains tied to developments in the Middle East.
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