US Consumer Sentiment Plunges to Lowest Level Since 1978 as Iran War and Tariffs Fuel Economic Pessimism

The University of Michigan Consumer Sentiment Index fell to its lowest level since the survey began consistent monthly tracking in 1978, reflecting deep public anxiety over the Iran war, oil price volatility, and tariff uncertainty. With WTI crude at ~$91.27/barrel and gasoline averaging $3.45/gallon nationally, household budget pressure intensified. The federal deficit stood at $1.9 trillion (5.8% of GDP), unemployment at 4.3% in March, and non-farm payrolls averaged only 20,000 per month since January 2025 — well below the 150,000 monthly gains typical of a healthy expansion. Analysts cited the Hormuz blockade's disruption to global supply chains and the prospect of renewed military strikes as the primary drivers of the pessimism.