Retail Sales Rose Before Iran War

Spending increased in February before gas prices spiked due to attacks.

Apr. 4, 2026 at 6:42am

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A geometric abstract illustration using bold shapes and primary colors to conceptually represent rising retail sales before geopolitical tensions disrupted the economy.Retail sales data showed a pre-conflict surge, but the Iran war's impact on gas prices could constrain future consumer spending.NYC Today

Retail sales in the United States rose in February, before gasoline prices spiked due to attacks on Iran by the U.S. and Israel. Shoppers increased their spending in the month prior to the conflict, which led to a jump in fuel costs.

Why it matters

The rise in retail sales in February suggests consumer confidence and spending power was strong before the geopolitical tensions with Iran disrupted the economy. However, the subsequent increase in gas prices could dampen consumer spending in the coming months.

The details

Retail sales data showed an increase in February, indicating shoppers were willing to open their wallets before the conflict with Iran caused gas prices to surge. The attacks on Iran by the U.S. and Israel led to a spike in fuel costs, which could constrain consumer spending going forward.

  • Retail sales data was reported for February 2026.
  • The attacks on Iran by the U.S. and Israel occurred after the February retail sales period.

The players

United States

The U.S. government conducted attacks on Iran, leading to a spike in gas prices.

Israel

Israel also participated in the attacks on Iran, contributing to the rise in fuel costs.

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What’s next

Economists will be closely watching future retail sales data to see if the higher gas prices resulting from the Iran conflict impact consumer spending in the coming months.

The takeaway

The February retail sales increase suggests the U.S. economy was on solid footing before geopolitical tensions disrupted the market, but the subsequent rise in gas prices could pose a challenge for consumer confidence and spending going forward.