Iran war fuels record inflation

The Labor Department reported that gas prices skyrocketed 21.2% in March, the largest monthly increase in nearly 60 years.

This inflationary shock, tied directly to the conflict in the Middle East and the closure of the Strait of Hormuz, has pushed consumer sentiment to record lows.

Economists warn that the pass-through effects from tariffs and energy volatility are diminishing the likelihood of Federal Reserve interest rate cuts this year.

Treasury Secretary Scott Bessent noted that while core inflation remains modest, the energy crisis is creating durable economic shocks that could lead to a global recession.