Inflation rises in US amid Iran war, Hormuz blockade

Government report shows gasoline going up by 21.2 percent in March as petrol remains above $4 per gallon despite a truce.Consumer prices in the United States have risen by nearly 1 percent in March – one of the highest short-term inflation rates in years – largely due to the disruption of the energy markets amid the war on Iran.A report by the US Bureau of Labor Statistics, released on Friday, showed that inflation in March rose by 0.9 percent, compared with 0.3 percent in February. It was the largest uptick since May 2022, which took place at the height of the cost-of-living crisis prompted by the COVID-19 pandemic.Recommended Stories list of 4 itemslist 1 of 4Shipping in Strait of Hormuz at a standstill despite US-Iran ceasefirelist 2 of 4‘For Trump, this is seen as an unmitigated failure, this war’list 3 of 4Vance expects ‘positive’ Iran talks as he heads to Islamabadlist 4 of 4Pakistan sets modest goal for US-Iran summit: A deal to keep talks goingend of listThe March increase was driven by energy prices, with gasoline going up by 21.2 percent and fuel oil increasing by more than 30 percent.“The index for energy increased 10.9 percent in March, the largest monthly increase in the index since September 2005,” the government report said.After the US and Israel launched an all-out war on Iran on February 28, killing the country’s Supreme Leader Ali Khamenei, Tehran closed the Strait of Hormuz, sending oil and gas prices across the world soaring.The price for a barrel of oil reached $120 during the war, up from about $70 on February 27.In the US, the price of one gallon (3.8 litres) exceeded $4.1. It was less than $3 before the fighting began.Late on Tuesday, the US and Iran agreed to a two-week ceasefire that would see Iran lift its blockade on Hormuz.But marine traffic in the strategic waterway that connects the Gulf to the Indian Ocean remains at a fraction of its pre-war levels.On Wednesday, Iran’s Fars News Agency said “oil tankers have been suspended from passing through the Strait of Hormuz” in response to the Israeli assault on Lebanon, which killed more than 300 people.