Summary

• The conflict in the Middle East has triggered a renewed surge in gasoline prices, adding pressure to U.S. consumers already facing the highest credit delinquency rates since the Global Financial Crisis.
• Consumer credit delinquencies have steadily increased since 2021, with the sharpest deterioration concentrated in auto loans and credit cards.
• A subset of consumers, primarily subprime borrowers who tend to be lower-income households, has driven most of the increase in delinquencies.

By Christian Floro, CFA, Market Strategist

The conflict in the Middle East has triggered a renewed surge in gasoline prices, adding pressure to U.S. consumers already facing the highest credit delinquency rates since the Global Financial Crisis.

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