US Growth Forecast Drops to 1.9% as Iran War Gas Prices Offset Trump Tax Refund Gains in 2026

US economic growth forecasts have been downgraded to 1.9% as surging gas prices following the Iran war negate the benefits of tax refunds.Financial experts note that the 740-dollar spike in annual fuel costs effectively nullifies the average 748-dollar refund increase from Donald Trump era legislation.Data from the Bank of America indicates that gasoline spending has jumped 14.4% recently, straining household budgets across the country.Oxford Economics warned that this energy shock will likely deepen economic disparities while reducing discretionary spending on dining and travel.
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