US Retail Sales Slow Amid Iran War

Shoppers in the United States pulled back on spending in April, with retail sales rising only 0.5%, a significant slowdown from March's 1.6% growth. This decline is primarily attributed to higher gas prices, fueled by the Iran war which began in late February and led to the shutdown of the Strait of Hormuz, cutting off one-fifth of the world's daily oil supply. The average price for a gallon of regular gasoline rose to $4.53. This has left less disposable income for nonessential goods like clothing and furniture, with sales at department stores falling 3.2% and furniture stores slipping 2%. Despite a strong job market with 115,000 jobs added last month, inflation is a growing concern, as the United States — United States Department of Labor reported a 1.4% increase in the U.S. producer price index and a 3.8% jump in the consumer price index from April 2025. Major retailers like Walmart and Oracle Corporation are expected to release quarterly results next week, which will offer more insight into the impact of these economic pressures.