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Americans are paying for the war in Iran with every visit to the gas station, but some of the damage to the U.S. economy is being offset — for now anyway — by big tax refunds and an investment boom driven by artificial intelligence. According to a slew of economic data released Thursday, prices rose at the fastest pace in almost three years last month, U.S. economic growth is steady and layoffs fell last week. But an inflation gauge closely monitored by the Fed had its biggest gain in three years, driven by soaring gasoline prices.

As the Iran war enters its third month, consumers are paying for its disruption of worldwide energy production. There have been big swings in the oil market, but prices surged overnight on worries that the war will affect the flow of crude oil for a long time. Gasoline prices have been climbing, and some of the most immediate economic pain is at the pump. But drivers aren’t the only ones affected. Nearly everything else that’s bought and sold must travel from where it’s produced. Many companies warn there’s more to come: the cost of fuel and of materials derived from petroleum could drive up prices for food and household items.