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The Independent UK
The Independent UK
National
Paul Wiseman and Christopher Rugaber

Tax refunds and AI boom have offset some US economic pain from Iran war and high gas prices, so far

US Energy Crisis - (Copyright 2026 The Associated Press. All rights reserved.)

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.

Prices rose at the fastest pace in almost three years last month, U.S. economic growth is steady and layoffs fell last week, according to a slew of economic data released Thursday.

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