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As tensions from the conflict in Iran continue to shake up markets, Americans are starting to feel the impacts where it hurts the most: at the pump. But for some policymakers, that's a worthy tradeoff.

Speaking on Newsmax's Wake Up America in April, Senator Roger Marshall addressed rising gas prices directly: "I'm sorry the gas prices are going up," he said, before adding that "your national security, yes, is even more important than your pocketbook." (1)

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Marshall pointed to what he described as underlying economic strength, noting that the U.S. is "the leading producer of oil in the world" and that "overall wages have been growing faster than inflation," while also suggesting that relief is on the way.

"Americans are going to get an extra $1,000 or $1,500 rebate," Marshall told Newsmax.

His comments come as tensions with Iran escalate and push oil prices higher and higher, past $4 per gallon for many (2). For everyday Americans, this dynamic quickly filters through to everyday costs — from fuel to food.

While Marshall thinks wages are growing, many households were already struggling to keep up with the cost of living well before the war started.

A Resume Now national survey review, published in January 2026, painted a stark picture: Only 12% of workers say their wages kept pace with inflation in 2025, and just 17% say they could "comfortably cover essentials" while saving for the future (3). About 65% of respondents said that the cost of everyday essentials is their biggest financial stressor.

Cost of living isn't about being able to afford avocado toast anymore, but just the basic costs of survival.

In fact, 92% of respondents reported cutting back on spending on things like groceries and health care, while 49% of Americans said they've dipped into savings just to get by.

This aligns with other recently released reports. For example, the National Institute on Retirement Security reported that the "typical working American has less than $1,000 saved for retirement (4)."

Additionally, in March, Vanguard released a report stating that more Americans requested hardship withdrawals in 2025 than in previous years, amounting to 6% of people with a retirement plan who made requests (5).

That's to say nothing of emergency accounts. According to Bankrate's 2026 Emergency Savings Report, 24% of American adults have no emergency savings at all (6).

In other words, there's no room left to absorb higher prices, regardless of national security.

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Unfortunately, rising gas prices don't just stop at the pump.

Higher fuel costs drive up transportation expenses, which, in turn, are passed on to the price of goods. Everything a household consumes that flows through the supply chain to the household will become more expensive.

Over time, that contributes to overall inflationary pressures and squeezes already squashed pocketbooks. Even small increases can add up quickly.

Marshall's remarks highlight a broader tension in the current economic moment. On the one hand, policymakers point to improving macro indicators, such as wage growth. On the other hand, around 39% of Resume Now respondents reported worsening affordability and financial strain in their day-to-day lives.

There are a few reasons for this, including the following:

Past inflation damage: Between 2021 and 2023, inflation outpaced wage growth (7). For example, in June 2022, inflation peaked at 9.1%, resulting in a permanent loss of household purchasing power (8).

Wage growth isn't similar across income levels: Not everyone is feeling the gains equally, as low-income households have lagged behind high-earning households, with one report showing that low-income households saw only a 1.4% wage increase in the 12 months leading up to November 2025 (9).

The gap between headline economic trends and household reality is becoming harder to ignore.

Regardless of how the Iranian conflict evolves, the financial pressure on households is unlikely to ease overnight.

That makes it more important than ever to focus on what you can control.

With costs rising, it's important to have a clear understanding of exactly how your money is being split. Sometimes, price increases can go unnoticed and eat into a budget that's already thin.

Monarch Money can help you bring your pocketbook into focus. Monarch Money's expense tracking system makes managing your funds easier by connecting all your accounts under one umbrella, giving you a detailed view of where you could cut back.

By linking your credit cards, you can also track your balances and payments in real time. That can help you stay on top of debt as higher everyday costs put more pressure on your finances.

Plus, for a limited time, you can get 50% off your first year with the code WISE50. Monarch Money also offers a seven day free trial, so you can see if it's right for you before committing.

For older Americans, especially those living on a fixed income, rising costs can be even harder to absorb. Making cuts to a fixed budget sometimes isn't realistic.

But not all savings require a sacrifice. Some of the easiest wins come from discounts people simply aren't using.

That's where AARP can help. AARP offers discounts to seniors on a wide range of essentials, from prescriptions and dental care to travel and insurance.

Beyond everyday savings, AARP also helps members make more informed financial decisions in retirement. It has resources that can help you make the most of Social Security, choose the right Medicare plan and uncover additional government benefits to help you lower your costs.

Tapping into these kinds of savings could help stretch every dollar a little further. You can sign up today and get 25% off your first year.

While gas prices tend to grab headlines, another driving expense has also been climbing in the background: car insurance.

Premiums have increased across much of the country by as much as 55% since February 2020, and many drivers don't realize how much more they're paying (10) — especially if they've stayed with the same provider for years.

Insurify can help you find what you should be paying for car insurance.

By using Insurify's comparison tool, you can view quotes from multiple top-rated insurers in one place. That makes it easier to avoid a "loyalty tax" for sticking with your current provider.

The process is simple: Answer a few basic questions, and Insurify can show you your options in as little as five minutes. It's completely free to use, and drivers who bundle home and auto insurance could even save up to 15% more.

At a time when many household expenses are rising all at once, revisiting a fixed cost like insurance could be one of the fastest ways to free up extra room in your budget.

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We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

YouTube (1); AAA (2); Resume Now (3); National Institute on Retirement Security (4); Vanguard (5); Bankrate (6); CreditNinja (7); CBS News (8); CNN (9); NPR (10)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.