The Iran war and a surge in oil and gasoline prices are exacerbating the K-shaped economy, a term coined during the Covid-19 pandemic. The term suggests that higher-income households perform better on the upward arm while lower-income ones fall further behind. Economists argue that a rise in these prices acts as a tax on household spending power, which tends to hurt low earners more than the wealthy. The Iran war has resulted in the biggest oil supply disruption in history, leading to Brent crude oil rising more than 40% since its start. The national average gasoline price reached $3.79 a gallon, up about 87 cents per gallon, or 30%, from a month ago.