Retail sales in the United States soared past expectations in March, government data showed Tuesday, as gasoline prices surged on fallout from war in the Middle East.

Sales rose by 1.7 percent from the prior month to $752.1 billion, more than analysts expected -- its biggest jump in a year, Commerce Department data showed.

From a year ago, retail sales bounced 4.0 percent.

The acceleration came on the back of a 15.5 percent month-on-month increase in gasoline station sales, as energy costs climbed in March.

US-Israeli strikes targeting Iran from February 28 triggered Tehran's retaliation in virtually blocking the Strait of Hormuz, a key waterway for energy transit.

Since then, oil and gas prices have surged, and gasoline costs have risen in the world's biggest economy as well.

Steeper costs -- which have added pressure on households and businesses -- have in turn fueled fears of a broader inflation uptick, and an impact on consumer demand and growth.

Excluding gasoline stations, overall retail sales were up by just 0.6 percent on a month-on-month basis.

"The war-driven spike in gas prices drove the surge in headline retail sales in March," said economist Nancy Vanden Houten of Oxford Economics.

Beyond that, however, sales were likely boosted by "this year's surge in income tax refunds," she added in a note.

She warned: "The tailwind from a blockbuster refund season will fade soon, causing households to cut back on discretionary spending as energy costs remain high."

Chris Zaccarelli, chief investment officer at Northlight Asset Management, expects that further resilience in consumer spending would depend on the health of the jobs market.

Among other categories, sales at motor vehicles and parts dealers picked up by 0.5 percent from a month ago, while those at food and beverage stores climbed by 0.7 percent.



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