As Americans grapple with the economic fallout from the ongoing conflict in Iran, a majority report feeling financially worse off than at any point in the past quarter-century. A recent Gallup poll found that 55% of respondents believe their financial situation is deteriorating, marking the fifth consecutive year of declining economic sentiment. This level of pessimism closely parallels declines last seen during the Great Recession in the late 2000s.

The economic unease is unfolding against the backdrop of the Iran war, which has contributed to supply chain disruptions and rising prices. The mood has placed added pressure on President Donald Trump and congressional Republicans, particularly as the nation approaches the November midterm elections. Earlier this year, Trump advocated for legislation to cap credit card interest rates at 10% and directed the Justice Department to investigate meatpackers to reduce beef prices. Despite these efforts, public confidence in Trump’s economic stewardship has waned; a separate Reuters/Ipsos poll showed his approval rating on economic management dropped to 34%, the lowest of his second term.

Several factors are driving Americans’ financial anxiety. Despite inflation receding from its 2022 peak, many face persistent challenges from elevated costs in housing, healthcare, gas, and everyday goods. Approximately 40% of those surveyed expressed concern about their ability to cover monthly bills, with an 11-point increase in worries over minimum credit card payments compared to previous years.

Consumers like Kerigan Rosado, a 29-year-old administrative assistant from Saginaw, Michigan, illustrate the strain. Rising gasoline prices—recently climbing to $4.29 per gallon and expected to near $4.70 amid refinery disruptions—have forced Rosado and her husband to cut back on discretionary spending. “It means that we have stopped spending in a lot of other areas. We don’t go out anymore,” she said.

High living costs remain the chief concern for nearly one-third of Americans, a figure consistent with recent years but still near historic highs. Expenses related to college tuition, transportation, and childcare compound financial burdens. For many renters, housing costs are especially prohibitive. Half of American renters spend more than 30% of their income on housing and utilities, with 27% allocating over half of their earnings to these expenses. Homeownership remains increasingly out of reach, with the median home price in 2024 reaching five times the median household income—levels last observed during the 2005 housing bubble. Additionally, property taxes and insurance have surged, hampering both current homeowners and prospective buyers.

Energy costs have risen sharply, with 13% of respondents citing them as a top concern—a ten-point increase since last year and the highest level since 2008. Gasoline prices have surged since the Iran war began, hitting an average of $4.18 per gallon, the highest in four years. Analysts warn prices could rise further amid stalled peace talks.

Healthcare affordability also weighs heavily on Americans. Six in ten worry about covering costs if seriously ill or injured, and nearly half are concerned about routine medical expenses. The average family health insurance premium reached nearly $27,000 in 2025, up 6% year-over-year. Individuals like David Soyka, 62, who faces multiple health challenges, express fear of losing employer-sponsored coverage and the financial ruin that might follow serious medical incidents.

Health insurance costs are rising in part due to increased use of medical care and prescription drugs. Those covered through the Affordable Care Act (ACA) marketplace face steep premium hikes after Congress allowed enhanced tax credits to expire at the end of 2025, leading many to drop coverage or seek plans with fewer benefits. Enrollment declined by 1.2 million early in the year, with further decreases anticipated.

Meanwhile, changes to Medicaid under legislation enacted in 2025 will likely reduce coverage by 7.5 million people over the next decade. New rules require able-bodied adults to work, volunteer, or attend school to maintain Medicaid eligibility, and states must increase eligibility verification.

Overall, Americans are confronting an array of economic pressures, from essential living costs to healthcare expenses, amid uncertain prospects for relief in the near term.