Business

Inflation jumps to its highest level in three years

Close-up on a woman shopping at a convenience store and checking her receipt while exiting. (Hispanolistic.Getty)

(NEW YORK) — Inflation rose for a second consecutive month as the U.S.-Israeli war with Iran continued to send gasoline prices surging in April, government data on Tuesday showed. The inflation report matched economists’ expectations.

Prices rose 3.8% in April compared to a year earlier, marking an increase from a year-over-year inflation rate of 3.3% in the prior month. Annual inflation jumped to its highest level in three years, U.S. Bureau of Labor Statistics (BLS) data showed.

“I don’t think about Americans’ financial situation,” President Donald Trump told reporters Tuesday as he was departing for a high-stakes trip to China, when asked to what extent Americans’ financial situations were motivating him to make a deal with Iran.

“The most important thing, by far, is Iran cannot have a nuclear weapon,” the president further said, adding, “Every American understands.”

As recently as February, inflation stood at 2.4%, clocking in just a tick above the Federal Reserve’s target level of 2%.

The jump in prices last month owed in large part to a sharp rise in costs for products impacted by a global oil shock. Gasoline prices were 5% higher in April than March, the BLS report said. Airline fares climbed 2.8% from the previous month.

The Middle East conflict prompted the Iranian closure of the Strait of Hormuz, a maritime trading route that facilitates the transport of about one-fifth of global oil supply. The standoff prompted one of the largest oil shocks ever recorded.

The U.S. is a net exporter of petroleum, meaning the country produces more oil than it consumes. But since oil prices are set on a global market, U.S. prices move in response to swings in worldwide supply and demand.

Crude oil is the main ingredient in auto fuel, accounting for more than half of the price paid at the pump, according to the federal U.S. Energy Information Administration.

The price of an average gallon of gas stood at $4.50 as of Monday, AAA data showed – an increase of $1.52 per gallon since the war began on Feb. 28. That amounts to a roughly 50% price jump in about two-and-a-half months.

The surge in fuel prices sent costs surging for gas-dependent transportation, such as airline tickets. In March, airfare costs jumped more than 3% from a month earlier.

Within weeks, the jump in prices could spread to groceries, furniture and just about any other item delivered by diesel-fueled trucks and tankers, some analysts previously told ABC News.

The recent rise in prices has left many consumers feeling glum. In May, consumer sentiment fell to the lowest level ever recorded, according to a monthly survey conducted by the University of Michigan since 1978.

Consumer spending, which accounts for about two-thirds of U.S. economic activity, could weaken if shoppers remain pessimistic. In theory, a slowdown of spending could slow the economy.

By some measures, however, the U.S. economy has proven resilient amid the war.

Hiring slowed in April but remained solid, exceeding economists’ expectations, federal government data last week showed. The unemployment rate held steady at 4.3% in April, a low level by historic standards. Additionally, the economy grew at an annualized rate of 2% in the first quarter of 2026, marking an acceleration from 0.5% growth recorded in the previous quarter.

However, a persistent increase in consumer prices may put pressure on the Fed to raise interest rates as a means of dialing back inflation.

The Fed has opted to hold interest rates steady at three consecutive meetings since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times.

If the Fed moved to raise interest rates, it would hike borrowing costs for many consumer and business loans, risking an economic slowdown.

Markets forecast a roughly 70% chance of interest rates holding steady for the remainder of this year, according to the CME FedWatch Tool.

ABC News’ Karen Travers, Emily Chang and Fritz Farrow contributed to this report.

Copyright © 2026, ABC Audio. All rights reserved.

National

Denver airport fatal collision was a suicide, man identified, officials say

A Frontier Airlines Airbus taxis to a gate at Denver International Airport (DEN) it times in history” due to the ongoing Department of Homeland Security (DHS) shutdown. (Photo by Al Drago/Getty Images)

(DENVER) — The fatal collision in which a Frontier Airlines jet struck a person on the runway at Denver International Airport was a suicide, according to the medical examiner.

The man, who died of multiple blunt and sharp force injuries, has been identified as 41-year-old Michael Mott.

Mott was scientifically identified and police said they are talking to friends and family to better understand what had been going on in his life, the medical examiner said at a press conference Tuesday.

Mott was not an airport employee and no vehicle or bicycle was found nearby.  Investigators are still trying to understand what he was doing in the area, according to the medical examiner.

The runway where the incident occurred is about 2 miles away from the terminal and is very remote. Police have searched nearby farmland for any notes or items from him, but have not found anything, according to the medical examiner.

Denver International Airport officials said they have had fence jumpers before, but they are typically caught rather quickly. The airport got an intrusion alarm alert on Friday, but when they looked, they saw a pack of deer, which is common in the area. They could not see Mott, officials said.

It took 15 seconds for Mott to jump over the 8-foot fence with barbed wire. It took two minutes from that first moment for him to reach the runway and be hit, according to officials.

If you or someone you care about needs to talk, contact the free National Suicide Prevention Lifeline, 24 hours a day, seven days a week, at 1-800-273-8255.

Copyright © 2026, ABC Audio. All rights reserved.

Politics

Army cuts training as service is short billions of dollars

Army soldiers with the 1st Battalion, 82nd Artillery Regiment, 1st Cavalry Division artillery lookout atop a M109 A7 Paladin self propelled Howitzer during live fire training on April 29, 2026, in Fort Hood, Texas. (Brandon Bell/Getty Images, FILE)

(WASHINGTON) — The Army is grappling with a sudden budget crunch and scrambling to slash training costs across broad swaths of the force, according to internal documents reviewed by ABC News and multiple U.S. officials.

The move is to make up for a shortfall of some $4 billion to $6 billion, according to one of the officials, as the service has drastically expanded its operational footprint at home and abroad.

The cuts, which range from elite schools to unit-level training, have triggered a wave of abrupt cancellations and unusually aggressive spending scrutiny months before the fiscal year ends Sept. 30.

The service’s multibillion-dollar shortfall is the product of a widening set of operational demands and rising costs across the force.

Major drivers, a U.S. official noted, have been costs associated with the Iran war and an expanding mission securing the southern U.S. border.

Additionally, expansive National Guard missions, including the ongoing deployment in Washington, D.C., which alone is projected to cost roughly $1.1 billion this year, according to estimates from the nonpartisan Congressional Budget Office.

At the same time, the service is absorbing ballooning personnel expenses and stepping in to cover missions tied to Department of Homeland Security funding lapses, including at the southern border and construction projects. The Army is expected to be reimbursed for covering down for some of DHS’ expenses incurred during the record 76-day DHS shutdown.

The Army’s III Armored Corps, an umbrella of the Army’s heavy armor and cavalry units, is expected to bear a lot of the brunt, a document outlining projections to units on consequences of funding cuts shows.

That internal plan warns that the corps’ aviation units will deploy next year at “a lower state of readiness,” and “career stagnation” of mid-level officers who would oversee key training events and noted it would take a full year for units to rebuild “combat proficiency.”

The corps commands some 70,000 soldiers representing nearly half of the service’s combat power.

The reductions there include slashing roughly half of the formation’s budget and gutting pilots’ flight hours down to minimum mandatory levels.

The cuts to flights come as the Army’s aviation enterprise faces mounting scrutiny following a string of high-profile mishaps, much of that historically been attributed to fatigue and dwindling pilot flying time in recent years.

Also among the moves: an upcoming Army Sapper Course, the service’s premier combat engineering school, was canceled, while an artillery course set to begin Monday at Fort Campbell, Kentucky, was abruptly called off. Other units and military training courses are also auditing more closely how many soldiers it can train, two U.S. officials explained.

“Army commanders are taking all necessary measures to prioritize critical readiness and operational requirements, ensuring we operate responsibly within our currently enacted funding levels,” Col. Marty Meiners, an Army spokesperson, said in a statement.

The Defense Department declined to say whether similar training cuts are being made across the military or are largely confined to the Army, referring ABC News questions to the individual services.

The cuts come amid skyrocketing fuel costs, which can quickly drive up the price of large-scale training exercises, aviation operations and travel. But it remains unclear whether those soaring costs are directly behind the moves now rippling through Army commands.

The Pentagon’s belt-tightening measures were briefly mentioned on Capitol Hill Tuesday as Secretary of Defense Pete Hegseth testified before lawmakers on the Pentagon’s request for a $1.5 trillion budget. But defense officials never directly addressed the concerns.

“We need to know the impact of what it’s having on the services executing missions beyond the war, the department notified us that the standard fuel price for the services has increased from $154 to $195 a barrel,” Rep. Betty McCollum, D-Minn., said Tuesday during a hearing on the Pentagon’s budget.

“That’s more we have to pay for fuel. Then there’s less money available for training and exercise that the services need to perform,” she added.

Scaling back training late in the summer as the fiscal year winds down is relatively routine inside the Pentagon. But officials say it is far less common to see such sweeping cuts and cancellations this early in the budget cycle.

Copyright © 2026, ABC Audio. All rights reserved.

Entertainment

In brief: ‘Every Year After’ trailer, and more

Prime Video has dropped the trailer for its upcoming romance series, Every Year After, based on the bestselling book Every Summer After by author Carley Fortune. The series, starring Saltburn’s Sadie Soverall and High School Musical: The Musical: The Series’ Matt Cornett, tells the love story of two friends, Percy and Sam, over the course of six years and one week in the lakeside town of Barry’s Bay. The eight-episode season premieres June 10 …

Oscar Isaac’s Las Vegas-set Netflix show now has a title and more cast members. The show, about the high-stakes world of casinos, is called The Roman. Betty Gilpin, Alec Baldwin and David Costabile are joining Isaac in the cast. A release date for the eight-episode series has yet to be announced …

Paranormal Activity is going from the big screen to the Great White Way. Paranormal Activity: A New Story Live on Broadway will officially open in New York this fall. The Olivier Awards-nominated production will play a limited 20-week engagement beginning on Aug. 14 …

Breakout Love Story: John F. Kennedy Jr. & Carolyn Bessette star Paul Anthony Kelly has joined the cast of American Horror Story. The 13th season of the Ryan Murphy anthology series debuts on FX and Hulu this fall. Further details on Kelly’s role have yet to be revealed …

Copyright © 2026, ABC Audio. All rights reserved.

Sports

Scoreboard roundup — 5/12/26

(NEW YORK) — Here are the scores from Tuesday’s sports events:

NATIONAL BASKETBALL ASSOCIATION
Timberwolves 97, Spurs 126

NATIONAL HOCKEY LEAGUE
Sabres 3, Canadiens 2
Ducks 2, Golden Knights 3

MAJOR LEAGUE BASEBALL
Angels 2, Guardians 3
Yankees 6, Orioles 2
Rockies 1, Pirates 3
Nationals 10, Reds 4
Phillies 2, Red Sox 1
Rays 7, Blue Jays 6
Tigers 2, Mets 10
Cubs 2, Braves 5
Royals 5, White Sox 6
Marlins 0, Twins 3
Padres 4, Brewers 6
Diamondbacks 4, Rangers 7
Mariners 10, Astros 2
Cardinals 6, Athletics 4
Giants 6, Dodgers 2

Copyright © 2026, ABC Audio. All rights reserved.

Entertainment

‘Ted Lasso’ star Cristo Fernández signs pro soccer contract

Cristo Fernandez attends Elton John AIDS Foundation’s 34th Annual Academy Awards Viewing Party on March 15, 2026 in West Hollywood, California. (Jerod Harris/Getty Images)

Cristo Fernández is turning his on-screen soccer dreams into reality.

The actor best known for playing Dani Rojas on the hit Apple TV+ comedy Ted Lasso has signed a professional soccer contract with El Paso Locomotive FC, the club announced Tuesday.

Fernández, 35, joined the USL Championship side after completing what the club described as an “extensive” two-month trial.

During that stretch, the Mexican actor and forward trained regularly with the team and appeared in a preseason match against New Mexico United.

“Fútbol has always been a huge part of my life and identity, and no matter where life has taken me, the dream of competing professionally never truly left my heart,” Fernández said in a statement released by the club.

Long before his acting career took off, Fernández played youth soccer for Mexican club Tecos FC. However, an injury forced him to step away from the sport when he was 15 years old.

He later shifted his focus to acting and became one of the breakout stars of Ted Lasso in 2020.

His character, Dani Rojas, became a fan favorite for his upbeat personality and memorable catchphrase, “Fútbol is life.”

In recent years, Fernández has shared his journey back to soccer on social media, posting videos of himself training with professional clubs across the country, including teams connected to Major League Soccer organizations.

El Paso Locomotive FC head coach Junior Gonzalez said Fernández will bring both talent and leadership to the squad.

“Cristo is a great addition to our roster, adding another attacking threat to our forward line,” Gonzalez said. “His passion for the game and leadership qualities for our locker room allow us to continue growing the positive culture we strive for as a club.”

Fernández said the opportunity represents more than just a return to soccer.

“This journey back to professional soccer is about believing in yourself, taking risks, and continuing to chase your dreams no matter how unexpected the path may be,” he said.

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