Diesel prices hit a record $6.20 per gallon, driven by disruptions from the U.S.-Iran conflict in the Strait of Hormuz and Ukrainian strikes on Russian energy infrastructure. The surge threatens to raise costs across supply chains and complicate the GOP's affordability message ahead of midterm elections.
An economist estimates that the Iran war has cost U.S. households an average of $860 each through higher energy prices, totaling over $100 billion nationally. The impact has been severe for lower- and middle-income households, while wealthier Americans have weathered the increases better. Oil supply constraints through the Strait of Hormuz persist, and energy prices are unlikely to return to pre-war levels soon.
The Treasury Department announced it will buy back up to $6 billion in longer-dated U.S. debt this week as 10-year Treasury yields hit their highest level since 2023, exceeding 4.85%. The buyback, part of an increased operation announced by Treasury Secretary Scott Bessent, follows elevated yields driven by persistent inflation and geopolitical tensions, though market analysts argue the purchase size is insufficient relative to the $40 trillion national debt and projected deficits.