Before the United States and Israel launched attacks on Iran in late February, the American economy was on a positive trajectory. Inflation was declining, and consumers were seeing improved buying power. Gas prices were low, and interest rates were beginning to fall. However, with the ongoing conflict now entering its seventh month, the economic landscape has dramatically shifted. Despite President Donald Trump’s early assurances that the war would be a “short-term excursion,” the situation has become more complex. With less than six weeks until the November midterm elections, the administration faces a challenging economic environment that has overshadowed some of its achievements. The Trump administration has reported several positive economic indicators, including an all-time high in median U.S. household income and a record low in the percentage of people living in poverty. The stock market has remained strong this year, and the unemployment rate has stayed low. However, these positive developments have been overshadowed by rising inflation and increasing borrowing costs. Gas prices, which were just under $3 a gallon before the war, are now nearly $4.50 on average. Diesel prices have surged even more, reaching over $6.50, the highest on record. These increases have triggered a chain reaction, raising inflation, borrowing costs, and mortgage rates. Inflation has risen significantly since the start of the conflict. The consumer price index, which measures the average price of goods and services, has increased from 2.4% to 3.4%, a full percentage point higher. This has led the Federal Reserve to raise interest rates for the first time since 2023. The Congressional Budget Office has estimated that the war has added at least 0.5 percentage points to inflation. The yield on the 10-year Treasury note, a key indicator of economic health, has climbed to nearly 5%, mirroring the rise seen during the pandemic. This has increased borrowing costs, affecting mortgage rates, which are now over 7%, up from less than 6% before the war. Consumer sentiment has also taken a hit, with many feeling that basic necessities are becoming unaffordable. Surveys of consumer confidence show declining numbers, and affordability has become a central theme in upcoming elections. Meanwhile, the stock market has shown signs of stagnation, with investors possibly beginning to realize the conflict may not soon end. As the midterm elections approach, the economic challenges posed by the war continue to shape the political landscape, influencing both public opinion and campaign strategies.