Mickey Lyons is holding off on booking her next vacation — at least until prices drop.
“I can’t believe I’m saying this,” the 53-year-old Detroit resident said. “But I’m considering driving across the border to Windsor, Ontario, and taking a 12-hour train ride to Montreal rather than deal with airport hassles.”
While Lyons is a case study for the burgeoning vacation debate of 2026 — Are you better off flying, driving, or staying put? — long security lines aren’t the only thing plaguing Americans. The sudden onset of the Iran war has scrambled prices, mortgage rates, and the overall economic outlook in what was supposed to be another boom year for the US economy.
In March, Business Insider heard from dozens of frustrated travelers, exhausted airport staff, concerned economists, and cautious investors dealing with the ongoing consequences of another war in the Middle East and a partial government shutdown. After a period of optimism about a stabilizing economy, one month threw the outlook for the rest of the year into turmoil. For those planning travel, looking to switch jobs, or buy a home, 2026 just took an unwelcome detour.
Jobs, mortgage rates, and prices disrupted
Despite DHS saying it will resume paying TSA agents, it’ll take months to get back on track. Plus, spiking oil prices due to the Iran war are just the beginning of the ripple effects on inflation, as higher fuel costs raise prices for everything from flights and shipping to groceries.
Americans may have no choice but to tighten their belts. Costs could climb for food, electricity, and other goods if the war continues: The Organization for Economic Cooperation and Development said it expects US inflation to average 4.2% this year, nearly double the 2.4% annualized price growth recorded in February.
It’s part of why the Federal Reserve backpedaled on its recent economic optimism, and is likely to hold rates steady again in April to curb inflation.
In anticipation of hotter price growth, mortgage rates are climbing again after a steady decline in the 30-year fixed rate. Job seekers stuck in the low-hire “Great Freeze” market likely won’t feel relief anytime soon either. The latest jobs report showed shocking losses across a variety of white- and blue-collar sectors following months of growth.
On Wall Street, March has spurred whispers of a recession, especially if the Iran war and federal funding gaps continue. Household wealth is also set to dip as much as $1.5 trillion this quarter, one Pantheon Macroeconomics estimate said, as market swings take a hit to Americans’ portfolios and prompt decreased spending. A major consumer confidence indicator fell to its lowest level since December.
Each data point is a bellwether for America’s broader economic health, and all signs are pointing toward a rocky spring and summer. The DHS’s plan to pay TSA will slowly shorten security lines, but cost hikes will likely stick around for much longer.
For many travelers, the hardest part is the uncertainty of when it will all end. Bazela Malik, an accountant based in Florida, said her journey from LaGuardia to Fort Lauderdale turned into an over-24-hour nightmare involving two missed flights and several expensive Ubers. Megan Walsh, a copywriter from New York City, said she waited in a four-hour airport line while traveling back from New Orleans after her sister’s bachelorette vacation.
“You know the game, ‘Snake?’ It was like that — the line was eating itself,” Walsh said. “We couldn’t figure out where the end of the line was; there were loops and loops of people.”
Alexandra Karplus contributed reporting.
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