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Peace Deal? Energy Prices Still Rising

Peace Deal? Energy Prices Still Rising

Published 13 hours ago
Description

A fragile peace deal between Washington and Iran could ease tensions, but major questions remain—how long it lasts and what it means for supply chains already in chaos. With Iran’s nuclear program still unresolved, this isn’t a done deal. The energy shock from the Strait of Hormuz shutdown sent prices soaring, fueling inflation at 4.2%—the fastest in three years—and real wages have fallen, squeezing households. Though oil prices dipped after the truce, energy costs remain elevated, gas over $4 a gallon, and impacts ripple through transport and production. Clearing mines and resolving shipping backlogs could take months, delaying any return to normal prices—experts say full recovery may take six months to a year. The fallout? Higher fertilizer costs, food prices, and a tougher path for the Fed to judge if inflation is temporary or persistent.

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