Americans are paying for the war in Iran with every visit to the gas station, but some of the damage to the U.S. economy is being offset — for now anyway — by big tax refunds and an investment boom driven by artificial intelligence.

Oil and gas prices have spiked with the war in Iran.

American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain.

Oil prices jumped Tuesday for the second straight day and gas prices moved higher in the United States, underscoring the threat of rising inflation posed by the Iran war.

Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed off his tariffs on most nations for 90 days, but raised his tax rate on Chinese imports to 125%.

President Donald Trump has pledged cheaper prices and lower interest rates, but an economy transformed by the pandemic will make those promises difficult to keep.