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U.S. Economy Weakens Ahead of Iran Conflict: Experts Warn

3/13/2026

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Summary

Story summary

The U.S. economy showed weakness before the war with Iran, with GDP growth revised to 0.7% in Q4 2025.
Inflation pressures persisted, with consumer prices up 2.8% in January 2025, while oil prices rose amid the conflict.
The labor market stayed fragile, with February 2025 job losses as openings increased.
Economists warn that ongoing inflation and geopolitical tensions may slow the recovery and complicate Federal Reserve decisions on interest rates.

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Story summary

The U.S. economy showed weakness before the war with Iran, with GDP growth revised to 0.7% in Q4 2025.
Inflation pressures persisted, with consumer prices up 2.8% in January 2025, while oil prices rose amid the conflict.
The labor market stayed fragile, with February 2025 job losses as openings increased.
Economists warn that ongoing inflation and geopolitical tensions may slow the recovery and complicate Federal Reserve decisions on interest rates.