Negotiations between Washington and Tehran: The United States under pressure from inflation caused by the war

Inflation soared last month in the United States, reaching 3.3% over the year, reflecting the surge in prices at the pump due to the war in the Middle East.

Uncertainty surrounds the start of talks in Pakistan between Iranians and Americans on the third day of the ceasefire. The arrival of the delegations has not been confirmed and Donald Trump accuses Tehran of not respecting the agreement. Another American issue: reducing high inflation in the country.

The war in the Middle East has indeed had a significant impact on the cost of living in the United States. Inflation accelerates to 3.3% over the year, a first since May 2024, and it increases by 0.9% in a month. This is the strongest increase since June 2022, at the peak of the post-Covid inflation crisis, and after the invasion of Ukraine by Russia.

It is particularly the energy prices that are soaring, especially at the pump. Despite being the world’s top oil producer, the United States have still experienced the surge in prices. Between February and March, they increased by 21%. According to the BLS statistical service, this is unprecedented since the creation of a gasoline index in 1967.

When filling up, Americans are now paying over $4.15 per gallon, compared to about three dollars before the war. “The war has obvious economic repercussions that weigh heavily on middle and lower-income households […] and this is just the beginning,” summarizes Heather Long, an economist from Navy Federal Credit Union quoted by AFP.

“The rise in gasoline, diesel, and airline ticket prices is being felt and putting American households to the test. “

Heather Long, Economist

from franceinfo

However, Donald Trump was elected partly on the promise to improve purchasing power. A White House spokesperson assures that this inflationary surge is a short-term disruption that was anticipated and the Trump administration is “actively working to mitigate“. And he adds, “while the administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid trajectory“.

After more than 40 days of war, the Strait of Hormuz remains mostly closed. The status of this strategic artery will be one of the issues in the negotiations between Americans and Iranians starting on Saturday, April 11.