This deterioration is largely fueled by persistent inflation, geopolitical policy uncertainty linked to the Iran conflict, and expectations of rising gasoline prices. The negative sentiment spread across all political affiliations—hitting Republicans hardest—but took the heaviest toll on vulnerable demographics, including older adults, lower- and middle-income households, and those without stock investments. Broader economic pessimism intensified alongside personal budget pressures, marked by a 10% drop in expected business conditions over the coming year, a 13% tumble in the five-year outlook, and lingering threats of escalating trade tensions.