Federal Reserve: U.S.-backed war with Iran keeping inflation at 3.5%
Business
The ongoing U.S.-backed war with Iran, which began in late February 2026, is making everyday prices climb even higher.
Federal Reserve leaders say rising oil costs and supply chain headaches are keeping inflation up, with March's rate at 3.5%, well above the Fed's 2% goal.
Shipping, fuel and chemicals squeeze businesses
Businesses are feeling the squeeze from pricier shipping and shortages of things like industrial chemicals, and higher costs for aluminum and diesel.
Business leaders initially viewed energy spikes as temporary and manageable, but now expect financial markets expect interest rates to remain elevated for at least another year.
With oil jumping past $100 a barrel and gas over $4.50 per gallon, it looks like this conflict is set to keep economic pressure on for a while.