The US economy expanded at a 2 percent rate in the first quarter of 2026, falling short of analyst expectations as rising energy costs driven by the war in Iran stifled consumer spending.While business investment in artificial intelligence remains a bright spot, the blockade of the Strait of Hormuz has fueled inflation and forced the Federal Reserve to hold interest rates steady.Fragile household finances and a cooling labor market present significant risks to the economic outlook for the remainder of the year.