Major US retailers suggested shoppers are reining in spending as the Iran war raises prices on essential goods.

Walmart on Thursday reported a worse-than-expected outlook, noting that its sales were driven by lower-price goods.

The average number of gallons a customer buys at Walmart gas stations has fallen to 2022 levels, in an “indication of stress” amid soaring fuel prices, the company’s finance chief said.

A Target executive echoed those fears, saying this week that “sentiment has been declining recently.”

The signals spell trouble for an economy that has chugged along thanks in part to “resilient” consumers.

US manufacturing activity picked up this month, new data showed, as companies stock up their inventories to protect against potential shortages and price hikes.