Donald Trump's escalation against Iran has roiled US markets and energy costs. S&P 500 fell 2% for the week, its worst performance since October, after a sharp rebound on Tuesday followed by a Friday decline tied to weak jobs data. Retail petrol prices hit $3.38 per gallon, up 13% since the conflict began, according to GasBuddy. This spike reflects fears over the Strait of Hormuz, where oil shipments have plummeted 20% due to attacks on facilities in Qatar and Saudi Arabia. Higher energy costs threaten to worsen inflation ahead of midterm elections.

The conflict's economic ripple effects extend globally, with energy-importing nations facing inflationary pressures.