Gasoline prices in the US have hit $4 a gallon as oil prices surged more than 15% in a week, driven by the escalating US-Iran conflict and the blockade of the Strait of Hormuz. The strategic waterway, through which 20% of the world's oil passes, has been disrupted by US naval operations and Iranian counterattacks. Analysts warn the economic fallout could push inflation higher and strain global supply chains already under pressure from the ongoing conflict.
The Consumer Price Index fell to a 3.5% annual increase in June, marking the biggest monthly drop in prices since 2020 and coming in below economist expectations. The easing inflation comes as the US-Iran conflict threatens to push energy prices higher, creating a complex picture for the Federal Reserve. Gas prices had moderated prior to the escalation in the Middle East, but oil has surged over 10% in recent days. The mixed signals leave Fed Chairman Warsh facing difficult decisions on monetary policy.
Global stock markets tumbled on Friday as artificial intelligence stocks led a broad selloff, driven by concerns over valuations and the impact of the Iran war on energy costs. The Consumer Price Index fell to a 3.5% annual increase in June, marking the biggest monthly drop since 2020, but core inflation remains stubbornly above the Fed's target. Oil prices have surged more than 10% amid the Strait of Hormuz conflict.
The US Consumer Price Index fell to a 3.5% annual increase in June, the biggest single-month drop since 2020, offering some relief to American households. However, the escalation of conflict with Iran over the Strait of Hormuz threatens to reverse this progress by driving up energy prices. Fed Chairman Kevin Warsh, in his first congressional testimony, pledged to get inflation under control but did not specify whether he would support higher interest rates. The White House welcomed the inflation data even as officials acknowledged that energy costs could spike if the conflict disrupts oil shipments through the strategic waterway.
The Bureau of Labor Statistics reported that inflation eased to 3.5% in June, down from 4.2% in May, as gasoline prices declined sharply in response to negotiations between the US and Iran. Core inflation, which strips out volatile food and energy prices, clocked in at 2.6%. The reading marks the lowest inflation since March, though prices remain more than a percentage point above pre-war levels.
Oil prices rose 3% on Wednesday after the U.S. launched fresh strikes on Iran and reinstated a naval blockade of Iranian ports, renewing supply concerns through the Strait of Hormuz. Separately, China reported its slowest GDP growth since 2022 at 4.3%, fanning calls for stimulus. Meanwhile, ASML raised its 2026 sales forecast for the second time this year on surging AI chip demand, and SK Hynix shares jumped 8% as Asia tech stocks rallied.
Oil prices jumped more than 9% on Monday after President Trump reimposed a blockade on Iran in the Strait of Hormuz, threatening to reverse the recent easing of inflation. The Consumer Price Index had slowed to a 3.5% annual rate in June during a brief lull in fighting, bringing some relief to consumers. However, the renewed disruption to one of the world's most vital energy corridors — through which 20% of global oil supply passes — is expected to push energy costs higher, with analysts warning that gasoline prices could rise sharply in the coming weeks. The IMF projected world output growth would fall to 3% for the year, weighed down by high commodity prices.
South Korean memory chip giant SK Hynix made its Nasdaq debut on July 10, raising $26.5 billion in the largest IPO by a foreign company in U.S. history. Shares opened at $170, 14% above the offering price of $149, and finished the day up 13%. The listing follows SpaceX's record $85.7 billion float in June, making 2026 a landmark year for U.S. capital markets. SK Hynix controls over 50% of the high-bandwidth memory market, supplying every Nvidia H100, H200, and Blackwell GPU.
The International Monetary Fund projected world output growth would fall to 3% this year, driven down by high commodity prices and the escalating Iran conflict. The European Central Bank hiked interest rates for the first time since 2023 as energy costs surged, while U.S. job creation cooled sharply with payrolls growth of just 57,000 in June. Oil prices climbed further after the resumption of U.S.-Iran strikes threatened supply routes through the Strait of Hormuz.
The International Monetary Fund projected world output growth would fall to 3 percent for the year, driven by high commodity prices from the Iran war and persistent inflation. The US trade deficit widened in May as goods imports hit a record high. Oil prices climbed after new US strikes on Iran. The forecast reflects mounting economic pressure from the Middle East conflict alongside ongoing inflation challenges across developed economies.