Iran war drives global inflation

The Labor Department reported that headline inflation rose to 3.3%, driven almost entirely by the massive increase in fuel costs.

While 'core' inflation remained relatively stable, the shock from the effective closure of the Strait of Hormuz has filtered through to various sectors of the economy.

Treasury Secretary Scott Bessent noted that millions of workers are feeling the pinch as real wages struggle to keep pace with rising costs at the pump.

Economists warn that persistent high energy prices could complicate the Federal Reserve's plans for interest rate adjustments later this year.