Negotiations between Washington and Tehran: the United States under pressure from war

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

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

The war in the Middle East has indeed had a strong 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% over a month. This is the largest 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 soar, especially at the pump. Despite being the world’s leading oil producer, the United States still suffered from the surge in prices. Between February and March, they increased by 21%. And according to the BLS statistics service, this is unprecedented since the creation of an index for gasoline 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 at the Navy Federal Credit Union bank quoted by AFP.

“The rise in gasoline prices, diesel, and airfare 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 that the Trump administration “is actively working to mitigate.” And he adds, “as the administration ensures the free flow of energy through the Strait of Hormuz, the American economy remains on a solid path.”

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