Iran war fueling economic uncertainty, pressures for Utah consumers

SALT LAKE CITY — As Utah settles into the dog days of summer, the state’s economic picture — like the rest of the nation’s — remains uneven and rapidly changing.

On a positive note, the Beehive State ranked fourth among states for annual job growth in May, and the state’s labor force participation rate remains sixth-highest in the country.

Inflation also slowed in June, bringing consumers a bit of good news following a May in which consumer sentiment declined significantly amid rising inflation across Utah and the U.S.

The primary culprit in slowing inflation was a sharp decline in energy prices, which helped overall prices fall 0.4% in June compared to the 0.5% increase seen in May, according to data from the Consumer Price Index.

Lower gas prices, which decreased nationally from a monthly average of $4.48 per gallon in May to $4.05 per gallon in June, coincided with a jump in consumer sentiment. In Utah, sentiment increased 1.6% in June from 70.3 in May to 71.5, according to data from Zion’s Bank Utah Consumer Sentiment Index.

But relief at the pump is unlikely to last as the ceasefire agreement signed by the U.S. and Iran in June has eroded, disrupting energy flows through the Strait of Hormuz, which handled about a fifth of daily global oil and LNG trade before the war began.

the national average is at $3.93/gal this morning on its way to reaching $4 in the next few days, while diesel is just fractions of a penny from $5/gal again according to live GasBuddy data. https://t.co/CgD0Nqhlwn

— Patrick De Haan (@GasBuddyGuy) July 16, 2026

According to Reuters, fewer vessels passed through the strait on Wednesday, the first ​day after the U.S. reimposed its naval blockade on Iran. Seven crossed on Wednesday, down from 13 the previous day.

At the close of the formal trading session Wednesday, West Texas Intermediate (the primary benchmark for oil pricing in North America) rose 26 cents to settle at $79.60 a barrel — its highest mark since June 15.

A Thursday release from AAA said the national average for a gallon of regular gas crept up 10 cents since last week to $3.94.

“Instability along the Strait of Hormuz is contributing to the increase at the pump and pushing crude oil prices toward $80 per barrel. Most states are still averaging less than $4 per gallon,” said the release.

Utah is one of the states still below the $4 per gallon average, but not by much, sitting at $3.94 at the time of writing.

“The latest dashboard shows Utah’s economy retaining some underlying strength, including continued job growth and a modest improvement in consumer sentiment, but the broader economic picture remains uneven,” Natalie Gochnour, director of the Kem C. Gardner Policy Institute, said in a statement. “Continued uncertainty, fueled by ongoing global conflict, is likely to add to the pressures Utahns are already feeling, particularly as it affects prices, planning decisions, and overall economic performance in the months ahead.”