US inflation jumps to two-year high as Iran war pushes up energy prices

US inflation surged to 3.3% in March, reaching its highest level in two years. The main driver was a sharp increase in energy and gasoline prices, which multiple reports link directly to the ongoing war in Iran and its impact on global oil markets.

This high inflation reading puts the Federal Reserve in a difficult position regarding interest rate policy. It also contributed to a record low in US consumer sentiment in April, as households feel the pinch from higher prices.