This story appeared in The Logoffa daily newsletter that helps you stay informed about the Trump administration without letting political news rule your life. Register here.
Welcome to The Logoff: The economic impact of the Iran war is becoming increasingly clear.
What is happening? On Friday, we learned that inflation rose to 3.3 percent in March, nearly 1 percent higher than in February and the fastest rate of inflation on record. almost four years.
Not surprisingly, users are not happy. New data from the University of Michiganalso released on Friday, shows consumer sentiment from April below 50, its lowest level. It’s not even mid-April, so for now, those numbers are preliminary — but they point in a concerning direction.
What does Iran have to do with this? Shortly after the war began in late February, Iran closed Strait of Hormuzimportant source of oil and natural gas. It has remained largely closed ever since, driving gas prices above $4/gallon in the US and making many goods, including food, more expensive.
Will the ceasefire fix prices? Nope. The ceasefire, though fragile, is holding. But despite President Donald Trump’s wishes this week, there is no indication that it has led to the reopening of the Strait.
According to the BBCfour oil tankers, for a total of only 19 ships, have passed through the Straits since the ceasefire was announced; under normal circumstances, more than 100 ships pass through the Strait every day.
What’s next? US-Iranian negotiating teams will meet in Pakistan this weekend to discuss a more permanent peace deal, which could give the US economy a much-needed boost. How that will play out is anyone’s guess: On Friday, Trump issued another threat, writing on Social Truth that “The only reason (Iranians) are alive today is to negotiate!”
And so, it’s time to leave…
I always enjoy New York Magazine’s “Grub Street Meal,” where someone — a politician, a celebrity, a journalist — puts together a week of culinary choices of the moment. Their latest features investigative journalist and author Patrick Radden Keefe, and you can read it here.
Have a great weekend and we’ll see you back here on Monday!
