A new report from the Federal Reserve Bank of New York (the US central bank's regional branch) has found that lower-income Americans cut their petrol consumption by 7% in March following the outbreak of the Iran war on 28 February, yet still paid 12% more at the pump due to a roughly 25% rise in gas prices that month — with prices up 50% since the war began as of this week. By contrast, higher-income households earning above $125,000 a year reduced their consumption by just 1% while increasing their gas spending by 19%, reflecting a sharp divergence in how different income groups are absorbing the shock. Economists say the pattern is deepening what is known as the "K-shaped economy," in which wealthier Americans continue to thrive while lower-income households fall further behind — a trend compounded by findings from the Bank of America Institute showing that the poorest third of households now spend up to 10% of their income on fuel, compared with just 2.7% for higher earners.