U.S. Monetary Policy and Inflation

Diplomats say Iran has effectively closed the Strait of Hormuz, halting nearly all tanker traffic and driving up fuel prices — a spike in energy costs that is worsening inflation and dimming prospects for Federal Reserve rate cuts. At the U.N., Bahrain has proposed a Chapter VII resolution authorizing "all necessary means" to reopen the strait while France has tabled a rival, non‑Chapter VII call for de‑escalation and diplomacy, and the U.S. position remains unclear.