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US inflation surges 3.3% as Iran war impact bites

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Inflation in the United States rose sharply in March, government data showed Wednesday, as higher energy prices due to the war in the Middle East hit Americans hard.

The nationwide sticker shock put pressure on President Donald Trump, who has ordered peace talks with Iran and faces mid-term elections in November.

The rate of inflation rose to 3.3 percent year-on-year in March, the US Bureau of Labor Statistics (BLS). By comparison, this same consumer price index (CPI) rose 2.4 percent year-on-year a month earlier.

Gasoline prices surged by 21.2 percent between February and March — the largest monthly increase since the government began publishing a related index in 1967, the US Bureau of Labor Statistics (BLS) said.

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Excluding volatile energy and food prices, the inflation rate rose 2.6 percent compared to 2.5 a month earlier.

Markets had anticipated the surge, according to the consensus published by MarketWatch.

The United States and Israel began bombing Iran on February 28 and Tehran retaliated by blocking traffic in the Strait of Hormuz, a waterway used to carry a fifth of the world’s oil and gas deliveries.

Despite being the world’s top producer of crude oil, the United States also felt the pain, as prices at the gas pump shot up.

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A gallon (3.78 liters) of regular gasoline currently costs an average of $4.15 in the United States, compared to approximately $3 just before the war.

– More price pain ahead –
The Trump administration — elected in part on a promise to quash inflation — maintains that the war’s economic disruptions will be temporary.

US Vice President JD Vance said Friday he hoped for a “positive” outcome as he departed Washington for US-Iran peace talks being held in Pakistan this weekend.

But experts predicted more economic pain ahead due to the war in Iran, especially for middle and lower-income households in the United States already squeezed by rising energy and airfare prices.

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Heather Long, chief economist at Navy Federal Credit Union, said that inflation soared in March to the highest level in almost two years.

“This is only the beginning. Food prices, travel and shipping costs are all going up in April and will exacerbate the pain,” she said.

“March CPI was as expected, so no surprises. But there is a huge increase in fuel prices, boosting inflation” Christopher Low of FHN Financial told AFP.

“And we got the news last night that the ceasefire is not being honored by either side, apparently,” he said. “There’s still very little traffic through the Strait of Hormuz.”

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When Trump returned to the White House in January 2025, inflation was falling, compared to a peak in the spring of 2022.

The war in Ukraine, which had started a few months earlier, had driven prices at the pump even higher than they are today.

The CPI index was rising by 2.3 percent year-over-year in April 2025 — coinciding with the US president’s announcement of a sharp increase in tariffs on imported goods.

Inflation started to creep up, though Washington refused to acknowledge this as a consequence of the tariff war.

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Price growth slowed again late last year, largely thanks to gasoline prices, relatively moderate at the time.

During the Federal Reserve’s most recent meeting in mid-March, Chairman Jerome Powell explained that the war risked delaying efforts to bring inflation under control in the United States.

The US central bank’s target for inflation is two percent — an objective it has not met in five years due to a succession of shocks to the economy: the Covid-19 pandemic, the war in Ukraine, and tariffs.

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Ecuador ex-president bags five-year jail term over $76m bribery scandal

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An Ecuadorian court has sentenced former President Lenin Moreno to five years in prison for accepting bribes linked to the construction of the country’s largest hydroelectric dam.

Moreno, who served as president from 2017 to 2021, was among 20 people convicted over corruption allegations surrounding the Coca Codo Sinclair hydroelectric project, which was built by Chinese company Sinohydro.

Prosecutors alleged that Sinohydro paid about $76 million in bribes, representing roughly four per cent of the project’s total cost.

Moreno, 73, denied the allegations and maintained that he never received money from the Chinese company.

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Speaking after Friday’s ruling, the former president said he had never received “a single cent” from Sinohydro.

He also blamed the case on the administration of his former political ally and predecessor, Rafael Correa, whom he accused of seeking revenge after their political relationship deteriorated.

Moreno served as Correa’s vice-president between 2007 and 2013 before succeeding him as president. The two later fell out after Moreno moved away from Correa’s socialist policies and developed closer ties with the United States.

The court also sentenced Moreno’s wife and other relatives to nearly three years in prison for complicity in the corruption case.

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Two former managers of the Coca Codo Sinclair power plant were also among those convicted.

Prosecutors had initially requested a six-and-a-half-year prison sentence for Moreno.

The former president has announced plans to appeal the judgment.

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Trump Signs Executive Order Renaming Lake Ontario To ‘Lake America’

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US President Donald Trump has signed an executive order renaming Lake Ontario as “Lake America” for official US federal use, in the latest escalation of his dispute with Canada.

Trump signed the order on Thursday at the White House, saying the change was effective immediately. The order directs the US Department of the Interior to update federal geographic records and naming systems.

Trump justified the move by accusing Canada of treating the United States unfairly in trade and defence. He said Canada had been “ripping us off” in trade and criticised Ottawa over its relationship with Washington.

However, the order does not require Canada or international organisations to adopt the new name. Lake Ontario is shared by the US state of New York and Canada’s province of Ontario, with more than half of its surface area lying in Canadian territory.

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Ontario Premier Doug Ford dismissed the move, saying the lake would continue to be known as Lake Ontario by Canadians and much of the rest of the world.

The renaming comes amid a rapidly worsening US-Canada trade dispute. Washington recently imposed 50 per cent tariffs on about $20 billion worth of Canadian goods, while Canada responded with retaliatory tariffs of its own on hundreds of US products.

The latest move echoes Trump’s decision in January 2025 to rename the Gulf of Mexico as the “Gulf of America” for US federal purposes.

Trump also suggested that further geographic name changes could be considered, joking that after a gulf and a lake, the United States might eventually rename the Atlantic or Pacific Ocean.

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Canadian Prime Minister Mark Carney’s government had not immediately issued a formal response to the latest order.

The controversy has added another symbolic dimension to already strained relations between the two neighbouring countries, as both sides continue to impose tariffs and seek to protect their economies.

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US Secret Service Reacts To Iran’s Alleged Threat To Trump’s Son Life

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The United States Secret Service has confirmed that it is aware of a video broadcast by Iranian state media that appears to threaten the life of Barron Trump, the youngest son of US President Donald Trump.

The nearly three-minute video, aired by the state-run Islamic Republic of Iran Broadcasting (IRIB), opens with an English-language graphic asking: “Where to kill Barron Trump?!” It then displays stylised graphics identifying places where Barron is publicly known to spend time, including Trump Tower in New York.

The video ends with a narrator referring to people being “eagerly waiting to receive our $10 million reward.”

Secret Service spokesperson Nate Herring confirmed that the agency was investigating the video as a potential threat against one of its protectees.

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“The US Secret Service is aware of the video and investigates anything that can be perceived as a threat toward our protectees,” Secret Service spokesperson Nate Herring told CNN in a statement. “Out of concern for operational security, we do not discuss matters of protective intelligence.”

The apparent targeting of Barron marks a new development in a broader pattern of threats directed at Trump and members of his family by hard-line Iranian media.

Iranian media outlets have previously published material threatening President Trump and his family, while first lady Melania Trump has also been the subject of threats. However, the video appears to be the first public instance in which Barron has been specifically singled out.

A federal law enforcement source told CNN that the video forms part of a wider campaign of material from Iran targeting Trump and his family. According to the source, some of the videos have included details about movements and suggestions for killing members of the president’s family.

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The security response to such threats involves continuously changing and adjusting protective arrangements, based on information gathered by the Secret Service, other US agencies, police authorities and foreign governments.

IRIB, which broadcast the video, is regarded as aligned with hard-liners within Iran’s regime, while its head is directly appointed by Iran’s supreme leader.

Trump has previously spoken publicly about threats against his life from Iran.

“I’m on whatever list… so far, I guess I’ve been a bit lucky, but maybe that doesn’t last very long. These are evil, sick people.”

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He made the comments in July at the NATO summit in Turkey, before secretly leaving the country aboard an alternate military aircraft.

The departure was part of an elaborate security operation reportedly triggered by an Iranian threat. Trump boarded the aircraft while concealed inside a catering truck after officials determined that travelling on either version of Air Force One could expose him to an unacceptable level of danger.

A person familiar with the matter told CNN that the threat involved a shoulder-fired missile and was considered specific enough for officials to fear that Trump’s life would be at enormous risk if he travelled on either version of Air Force One.

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