The economic fallout from the war with Iran is driving up the cost of buying a home, even as other housing market trends in many parts of the country favor home shoppers this spring. Mortgage rates, which had been trending lower heading into this year, have been rising as the conflict stokes inflation fears. That threatens to put a damper on home sales during what’s traditionally the busiest time of the year for the housing market. At the same time, home shoppers who can afford to buy this spring are likely to benefit from more properties on the market and lower prices than a year ago in many metro areas.

Finance ministers from five European Union member states are urging the bloc to introduce a windfall tax on energy companies as surging oil and gas prices raise inflation fears. Spain, Germany, Italy, Portugal and Austria warned of market distortions linked to the Iran conflict that are driving up costs for households and businesses. The proposal would revive profit caps used during the 2022 energy crisis after Russia’s invasion of Ukraine. Inflation in the eurozone has already risen to 2.5% in March. With Iran disrupting tanker traffic through the Strait of Hormuz, officials warn fuel prices may stay elevated.

United Airlines is raising checked bag fees starting Friday. The move comes as higher fuel costs ripple through the airline industry. Most travelers flying within the U.S., Mexico, Canada and Latin America will now pay $45 for the first checked bag and $55 for a second. That's $10 more than before the Iran war started Feb. 28. United says it’s their first baggage fee increase in two years. Some customers like loyalty members will still get a free bag. JetBlue also raised fees this week. Airlines say rising crude oil prices are pushing up operating costs. United on Friday also announced a pricing change coming this month for its front cabins. Three new tiers will offer different perks for premium passengers, similar to economy.

American employers added a surprisingly strong 178,000 new jobs last month, rebounding from a dismal February. And the unemployment rate dipped to 4.3%. The Labor Department reported Friday that hiring marked a rebound from the loss of 133,000 jobs in February. The job gains were about three times what economists had forecast. The unemployment rate was down from 4.4% in February. But uncertainty surrounding the war with Iran — and its impact on energy prices — is clouding the outlook for the labor market.

Stocks overcame early losses to finish with slim gains and close out their first winning week since the start of the Iran war. Oil prices remained elevated, however, having soared after a national address late Wednesday from President Donald Trump, where he vowed the U.S. will continue to attack Iran and failed to offer a clear timetable for ending the conflict in the Middle East. A barrel of U.S. crude oil rose to $111.54. Tesla shares fell more than 5% after its deliveries for the first quarter fell short of estimates. Stock markets will be closed for Good Friday.

Britain has accused Iran of holding the global economy hostage as diplomats from over 40 countries discuss ways to press Tehran to reopen the Strait of Hormuz. The U.S. was absent from the virtual meeting following President Donald Trump's stance that securing the waterway is not America's responsibility. U.K. Foreign Secretary Yvette Cooper highlighted the impact of Iran's actions on global oil and food prices. Shipping has slowed significantly due to Iranian attacks on vessels in he strait. French President Macron says reopening the strait by force is unrealistic. The 41 countries attending Thursday's meeting are demanding Iran stop blocking the strait and have pledged to work to ensure safe passage.

U.S. applications for unemployment benefits fell last week as layoffs remain sparse despite a softening labor market and rising energy costs due to the Iran war. The number of Americans applying for jobless aid for the week ending March 28 fell by 9,000 to 202,000 from the previous week’s 211,000, the Labor Department reported Thursday. That’s fewer than the 212,000 new filings analysts surveyed by the data firm FactSet were expecting and within the range of the past several years. Filings for unemployment benefits are considered representative of U.S. layoffs and are close to a real-time indicator of the health of the job market.

President Donald Trump's address to the nation on the Iran war did not always hew to the facts. In his remarks Wednesday night, Trump declared that he inherited a “dead and crippled country” and delivered an economy with “no inflation.” But in 2024, the last year of Joe Biden's presidency, the economy grew faster than any wealthy country in the world except Spain. And inflation has not been eliminated. Trump also depicted Iran's current leaders as less radical than the ones killed in the war. But the new supreme leader is viewed as even more hard-line than the one before, and Iran’s paramilitary Revolutionary Guard has grown even more ascendant.

Shoppers increased their spending in February, particularly on cars and clothing, after pulling back at the start of the year due to severe winter storms. Retail sales rose a better-than-expected 0.6% in February, from a revised 0.1% decline in January, the Commerce Department said Wednesday. But there’s concern that the Iran war, which is sending gasoline prices soaring and whose impact wasn’t reflected in the retail sales data, will derail spending at a time when Americans have already been squeezed by years of elevated inflation. Gas sped past an average of $4 a gallon on Tuesday for the first time since 2022 and jumped another 4 cents overnight. The national average for a gallon of regular gasoline hit $4.06 Wednesday. That was a dollar more per gallon before the war.