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Moneywatch - CBSNews.com

Over half of Americans say their finances are worsening, Gallup poll finds Gas prices jump to their highest level since start of Iran war Taylor Swift files to trademark her voice and image amid rise in AI deepfakes United Arab Emirates says it will permanently leave OPEC on May 1 Will the Fed cut interest rates? Here's what to expect at Wednesday's meeting. Hundreds of Google workers urge CEO to refuse classified AI work with Pentagon The legal showdown between Elon Musk and Sam Altman begins today. Here's what to know. California billionaire tax secures enough signatures to make ballot United Airlines CEO says he approached American Airlines to discuss possible merger Prediction markets in hot seat over rogue bettors and insider trading Tillis says he's prepared to move forward with Kevin Warsh's nomination for Fed chair How high energy bills, driven by new data centers, are affecting average Americans Naval escorts will likely be needed when Strait of Hormuz reopens, Chevron CEO says In 8 weeks, the Iran war has dented the U.S. economy. The damage could linger, economists say. Trump extends Jones Act waiver for another 90 days Trader Joe's customers sue over coffee's caffeine levels IEA says Iran war will keep the global natural gas market tight for two years Here are the college majors that new grads regret the most, according to a recent survey Food prices could rise more amid the Iran war. Here's how to cut costs on groceries. Planning to fly this summer? Book now before prices surge, airline experts say. Air travel prices likely to get worse in coming weeks, Chevron CEO says Only one Trump "gold card" visa has been approved so far, Commerce's Lutnick says Nearly 208,000 heated socks sold at Costco are recalled after customers report burns Meta to cut 8,000 jobs as it charges into AI JetBlue used customers' personal data to set ticket prices, lawsuit alleges How much does it cost to raise a child? Judge approves $425 million Capital One settlement. Here's what customers should know. AI is fueling a massive surge in crypto fraud schemes, IRS investigators say Why is the Trump administration considering bailing out Spirit Airlines? Rents around the U.S. are growing more slowly than they have in years
Hottest U.S. gas prices in years leave drivers feeling bu...
2026-05-07 · via Moneywatch - CBSNews.com

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/ CBS News

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The surging cost of filling up her car is taking a toll on Melissa Miles's finances — and her classroom attendance.

A full-time student in social work at Eastern Michigan University, she commutes daily in her 2015 Chevrolet Sonic between school and her home 80 miles away in Hillsdale, Michigan. But with gasoline prices in the state now averaging $4.80 a gallon, the 42-year-old told CBS News she has started skipping some classes to avoid the drive.

"Literally every day, I have to figure out, do I have the groceries for the week, or do I have the necessities for today? And then compare it to, can I miss this class?" said Miles, a single mom whose budget includes looking after her five-year-old son.

screenshot-2026-05-06-at-5-36-18-pm-1.png
Melissa Miles with her five-year-old son, Kingston. Miles regularly travels 160 miles round-trip to attend classes at Eastern Michigan University.

Miles is one of the millions of U.S. motorists grappling with sharply higher prices at the pump due to the Iran war. The national gas price rose on Wednesday to $4.54 a gallon, up more than $1.50 since the conflict erupted in late February, according to AAA. 

The cost of diesel has also jumped to $5.67, up from $3.54 a year ago, and is threatening to drive up the prices of countless goods delivered by truck and rail. 

Although President Trump said this week that the U.S. is making "great progress" in its negotiations with Iran, economists and energy experts predict that fuel costs are likely to remain elevated for months to come. 

Mark Zandi, chief economist at financial research firm Moody's Analytics, expects gas prices to settle at around $3.50 a gallon by the end of 2026, roughly 50 cents higher than the cost just before the war.

White House spokeswoman Taylor Rogers told CBS News that Mr. Trump remains committed to lowering fuel costs for Americans.

"As the president continues to exert maximum leverage over Iran with the ongoing successful blockade to bring this conflict to an end, we will see global energy markets stabilize and gas prices plummet back to the multi-year lows Americans enjoyed prior to the start of Operation Epic Fury," Rogers said in an email.

Sacramento, California, resident Daniel Hock expressed frustration with the state's skyrocketing gas prices, which at $6.16 a gallon are the highest in the country.

"I ultimately am the one footing the bill under a presidency that said that my gas prices would go down," he told CBS News.

The 33-year-old, who works as a university admissions adviser, said he now spends roughly $100 a week on gas, or roughly 9% of his pre-tax income. That's money he'd rather use to pay down the debt he accumulated during a recent four-month period of unemployment, he told CBS News. 

Not surprisingly, low-income Americans are taking the biggest hit from higher fuel costs, given that they spend a larger share of their income on gas than those higher up the income ladder. Bank of America data shows that in March, low-income families spent 4.2% of their income on gas, compared to 2.7% for wealthier households.

Steph Thornton, a 42-year-old single mom of two, said higher fuel prices are hurting people like her who live just above the poverty line. The Macomb, Michigan, resident, a community health worker, uses her 2017 Ford Escape to conduct home visits with clients. Thornton estimates she now spends about $400 a month on gas, compared to $320 earlier this year when prices hovered around $3 a gallon. 

"Many of us haven't even regrouped from the pandemic," Thornton said. "Things are just hitting us back-to-back."

Edited by Alain Sherter

In:

Trump administration struggles on gas prices

Trump administration struggles to ensure Americans that gas prices will drop soon 02:59

Trump administration struggles to ensure Americans that gas prices will drop soon

(02:59)