U.S. retail sales jumped 1.7% in March, the strongest monthly gain in over three years, according to Commerce Department data. The surge was largely fueled by higher gasoline prices as geopolitical tensions drove up fuel costs. February's retail sales had risen 0.7%, making the March increase particularly notable.

Economists surveyed by The Wall Street Journal had forecast a 1.5% rise, meaning actual sales exceeded expectations. The figures are seasonally adjusted but not adjusted for inflation, meaning rising prices likely contributed to the headline growth number. The war in Iran has disrupted oil markets, pushing pump prices higher nationwide.

While the headline number looks strong, the underlying driver raises concerns about consumer spending power. Higher gasoline prices effectively act as a tax on other purchases, potentially dampening discretionary spending in coming months. The data suggests Americans are paying more at the pump but may have less to spend elsewhere.