U.S. consumer confidence slipped in July as rising gas prices and ongoing conflict in the Middle East reignited economic concerns for American households.

According to data released Tuesday by The Conference Board, the Consumer Confidence Index fell to 90.8 in July, down from 92.2 in June. The decline reverses a brief rebound in June and keeps consumer sentiment stuck in a narrow, cautious band.

The drop was largely driven by deteriorating perceptions of current business and labor conditions. The Present Situation Index fell 3.6 points to 114.9—marking its third consecutive monthly decline—as fewer Americans reported that jobs were plentiful. Meanwhile, short-term expectations for future income, business conditions, and the labor market remained flat in negative territory at 74.7.

Economists attribute the pullback to renewed pressures at the pump. After easing to around $3.70 per gallon in June, average U.S. gas prices rebounded to $4.10 per gallon this week following escalated fighting between U.S. forces and Iran, which disrupted energy flows through the Strait of Hormuz.

In addition to rising fuel costs, write-in survey responses revealed persistent frustration over food and grocery inflation, with households continuing to adjust spending habits to cope with multi-year price increases.