US economic confidence hits lowest level since 2022 as Iran conflict drives inflation
With the Economic Confidence Index falling to -45, President Donald Trump faces mounting political pressure ahead of the November midterms as public approval of his foreign policy strategy wanes.
Economic confidence in the United States has plummeted to its lowest level since 2022, according to a Gallup poll released on 22 May 2026. The survey indicates that the Gallup Economic Confidence Index has dropped to -45, driven by widespread pessimism regarding both current economic conditions and future outlook. Only 16 percent of Americans view the economy as good or excellent, while 76 percent believe conditions are worsening.
The decline coincides with a sharp rise in petrol prices, which have averaged $4.55 per gallon following the outbreak of war between the US, Israel, and Iran in February 2026. Prior to the conflict, costs were below $3 per gallon. The surge is attributed to Iran’s closure of the Strait of Hormuz and a subsequent US naval siege on Iranian ports, which have disrupted global energy supplies and contributed to inflationary pressures despite a ceasefire beginning in April.
Forty-nine percent of respondents rated economic conditions as poor, with a further 34 percent describing them as fair. The index, which averages results on economic conditions (-33) and economic outlook (-56), recorded its worst findings since 2022. This period previously saw rising living costs following the pandemic and Russia’s invasion of Ukraine. Official government reports confirm that consumer prices rose in March and April due to the energy crisis.
The deteriorating economic sentiment poses significant political challenges for President Donald Trump ahead of the November midterm elections, which will determine whether his Republican Party retains control of Congress. A New York Times/Sienna poll released earlier in the week suggested that only 31 percent of voters approve of Trump’s handling of the war. Trump has stated that he does not consider Americans’ financial situations when making decisions regarding Iran, citing the prevention of a nuclear weapon as his sole motivation.
The US State Department recently released a legal justification for the conflict, arguing that Washington joined the war at the request of its Israeli ally and in the exercise of its own inherent right of self-defence. However, intelligence chief Tulsi Gabbard has stated that Tehran is not building a nuclear bomb, and Iran denies seeking such capabilities. Despite Trump’s promise to prioritise domestic issues, the administration argues the military campaign is necessary to prevent Tehran from obtaining nuclear weapons.
