The Federal Reserve Bank of New York's recent report reveals that the recent spike in gas prices has significantly affected households differently based on income levels. In March, gas prices reached a four-year high, driven by geopolitical tensions surrounding the Iran war, particularly the closure of the Strait of Hormuz, a critical oil supply route. The report indicates that nominal gasoline spending rose by over 15%, with high-income households increasing their spending by 19% while only reducing their real consumption by 1%. In stark contrast, low-income households increased their nominal spending by 12% but cut their real gas consumption by 7%. This divergence in spending and consumption patterns illustrates a K-shaped recovery, where wealthier households maintain consumption levels while lower-income households struggle. Middle-income households experienced moderate changes, with nominal spending rising and real consumption declining, further emphasizing the widening economic disparities exacerbated by rising energy prices.