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Gasoline Jumps 50% as Consumer Sentiment Plummets

5/22/2026

41 4 Full Breakdown

Summary

Story summary

Gasoline rose 50% to $4.55 gallon after Iran-Israel conflict disrupted Strait of Hormuz.
The University of Michigan said the U.S. consumer sentiment index fell to a low of 44.8 in May 2026, with Republicans and independents at their lowest levels of President Donald Trump's second term.
Economists warned that one-year inflation expectations rose to 4.8% and stock markets won’t aid most consumers because wealth gains and tax refunds are exhausted.

History

Historical Context

In October 1973 OAPEC, led by Saudi Arabia, imposed an oil embargo on the United States and other supporters of Israel, driving crude from $3 to $12 a barrel—a 300 % jump by March 1974. The shock reshaped U.S. energy policy, prompting the Strategic Petroleum Reserve and fuel-efficiency standards that today are invoked as gasoline spikes follow the 2024 Iran-Israel clash.

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Story summary

Gasoline rose 50% to $4.55 gallon after Iran-Israel conflict disrupted Strait of Hormuz.
The University of Michigan said the U.S. consumer sentiment index fell to a low of 44.8 in May 2026, with Republicans and independents at their lowest levels of President Donald Trump's second term.
Economists warned that one-year inflation expectations rose to 4.8% and stock markets won’t aid most consumers because wealth gains and tax refunds are exhausted.

1 / 2