Oil prices climb and stocks fall after Trump says he thinks Iran agreement ‘over’
Shot of oil pumps (Olga Rolenko/Getty Images)
(NEW YORK) — Oil prices climbed and stocks tumbled in early trading on Wednesday after President Donald Trump said he believes an agreement with Iran is “over” amid an exchange of strikes in the Middle East.
Brent crude, the benchmark measure for worldwide oil trading, climbed more than 5% in early trading on Wednesday, pushing the price up to nearly $78 a barrel.
Oil prices stand above pre-war levels, though they have fallen from a high of as much as $118 reached earlier in the conflict.
Stock prices fell in response to the heightened tensions and rising oil prices.
The Dow Jones Industrial Average dropped 600 points, or 1.1%, while the S&P 500 declined 0.6%. The tech-heavy Nasdaq fell 0.4%.
The war prompted the Iranian closure of the Strait of Hormuz, a shipping route that facilitates about one-fifth of worldwide oil supply. In turn, the global economy suffered a historic oil shock, sending oil prices surging.
A U.S.-Iran agreement last month, however, included a provision allowing commercial shipping to resume through the strait, and to do so toll-free for 60 days. Over the ensuing weeks, oil prices prices fell below pre-war levels.
The tensions in recent days rekindled upward pressure on oil prices.
Trump said that negotiations between the U.S. and Iran will continue, but he told reporters of the agreement, “For me, I think it’s over.”
“It’s just a waste of time dealing with them,” Trump said of Iran at a press conference in Ankara, Turkey, where he is attending the NATO summit.
Iran’s military said it launched on Wednesday attacks targeting 85 U.S. military sites in Kuwait and Bahrain, saying they were retaliatory strikes following a wave of U.S. airstrikes on Iranian targets.
U.S. forces hit over 80 targets overnight in a new round of airstrikes that came as an “immediate response” to Iran’s attacks on three commercial vessels transiting the Strait of Hormuz, according to U.S. Central Command.
ABC News’ Joe Simonetti contributed to this report.
e HR recruitment manager holding resume in hands while having an interview in a modern office. (Xavier Lorenzo/Getty Images)
(NEW YORK) — Hiring blew past expectations in May, registering at a blockbuster clip despite a continued rise in inflation set off by the Iran War.
The U.S. added 172,000 jobs in May, according to the report, which marked an acceleration from 115,000 jobs added in April. The reading for April exceeded economists’ expectations. The reading amounted to a slight downshift from March, when the U.S. economy gained 185,000 jobs.
Still, the job gains in May indicated a robust expansion of the labor market, defying concern about a potential economic downturn. Hiring has proven unexpectedly resilient in recent months, despite a rise in costs borne by businesses and shoppers.
The unemployment rate held steady at 4.3% in May, the Bureau of Labor Statistics (BLS) said. Unemployment remains low by historical standards.
The leisure and hospitality sector added 70,000 jobs in May, far exceeding an average of 14,000 jobs added each month over the past year. Job gains also came in local government and healthcare.
The Middle East conflict, which began on Feb. 28, 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 triggered 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.
The price of an average gallon of gas stood at $4.24 as of Thursday, AAA data showed – an increase of $1.26 per gallon since the war began on Feb. 28. That amounts to a roughly 42% price jump in about three months.
Grocery prices have also climbed as a result of higher diesel costs borne by suppliers.
A persistent increase in consumer prices may put pressure on the Fed to raise interest rates as a means of dialing back inflation. The choice to raise interest rates could slow price increases, but it risks a cooldown in economic performance.
For now, the U.S. economy appears robust. The economy grew at a solid pace over the first three months of 2026, rebounding from sluggish performance at the end of last year.
Futures markets overwhelmingly expect the Fed to hold interest rates steady when policymakers meet next month, according to the CME FedWatch Tool, a measure of investor sentiment.
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.
A Spirit Airlines aircraft prepares to depart from the Austin-Bergstrom International Airport on November 13, 2024 in Austin, Texas. (Photo by Brandon Bell/Getty Images)
(NEW YORK) — The Department of Transportation said on Saturday the majority of airlines will be capping tickets prices for Spirit Airlines travelers who need to rebook their canceled flights.
Some carriers have even reduced fares on high volume routes where Spirit used to operate.
Spirit began winding down operations early Saturday morning after talks between the airline and the federal government over a $500 million rescue deal stalled.
Spirit said that travelers who booked their tickets with a credit or debit card will be automatically refunded.
United, Delta, JetBlue and Southwest said they are capping ticket prices specifically for Spirit customers who need to rebook cancelled flights.
To access these special prices, individuals will need to provide at least a Spirit flight confirmation number and proof of payment, the airlines said.
These fares will only be available for a short period:
JetBlue: Available for 72 hours Southwest: Available for 72 hours; only in person at an airport ticket counter Delta: Available for five days United: Available for two weeks online American Airlines and Delta Air Lines are offering reduced fares on high-volume Spirit routes.
United Airlines said for the next two weeks, customers who were booked on Spirit can get one-way tickets on United flights from most cities where Spirit previously operated, including Atlanta, Chicago, Fort Lauderdale, Houston, Las Vegas, Miami, Newark, New Orleans and Orlando.
The airline said it has capped most of its fares at $199, though exceptions apply with longer flights not priced higher than $299.
Travelers will need to enter their Spirit confirmation number and verify they were scheduled to travel between May 2 through May 16 in order to be qualify for these special fares.
American Airlines said it has also launched a page on its website that displays rescue fares to and from a range of domestic and international destinations for Spirit customers needing to rebook travel.
The airline said it’s also reviewing adding additional capacity, including flying bigger planes and adding more flights on routes Spirit used to fly, to accommodate as many passengers as possible.
Allegiant Air has also committed to freezing fare prices across routes that overlap with Spirit. To support impacted travelers, Frontier Airlines is offering up to 50% off base fares across its network until May 10.
To help Spirit employees, the Department of Transportation said most major U.S. carriers are extending travel pass benefits and spare jump seats so employees can return to their homebases.
Airlines are also offering Spirit team members preferential employment interviews to ensure they jump the queue. American and United said they’re creating microsites for Spirit employees looking to continue a career in aviation, per the federal agency.
