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WASHINGTON — Seven weeks into the conflict after President Donald Trump joined Israel in strikes on Iran on Feb. 28, the administration is confronting mounting domestic economic fallout as Iran said it would reopen the Strait of Hormuz to shipping. U.S. gasoline prices have risen, inflation has increased and the president's approval ratings have slipped, prompting Trump and aides to pursue a diplomatic deal to ease market and voter pressures. Analysts say Iran has suffered military damage but has still exacted economic costs, triggering what some described as a major global energy shock. Financial markets rallied and oil prices fell when Iran said the strait would be open during a U.S.-brokered truce, though Iranian sources told Reuters that gaps in any emerging deal remained. WASHINGTON — Pressure from financial markets and portions of Trump's MAGA base helped push an abrupt shift on April 8 from airstrikes to diplomacy, officials and analysts say. Some economic pain has fallen on key constituencies such as farmers, who face disrupted fertilizer shipments, and travelers, who have seen higher airfares from rising jet fuel costs. The administration says it is maintaining red lines in negotiations, and President Trump told Reuters the emerging deal would address highly enriched uranium, a point Tehran denies agreeing to transfer outside its territory. Allies have expressed concern that the conflict highlighted erratic U.S. actions, and experts warn that even if the fighting ends soon the economic damage could take months or years to repair; analysts also say rivals may draw the lesson that the president seeks a diplomatic off-ramp once domestic economic heat becomes uncomfortable.

Prepared by Lauren Mitchell and reviewed by editorial team.