Global oil prices now below their recent peak
With the war in Iran virtually closing the Strait of Hormuz, choking off about a fifth of the world’s oil, oil prices went down by 12% on Tuesday but were rising again in futures trading on Wednesday. Wholesale gasoline prices rose by 23% since the start of the war in late February. Meanwhile, retail gas prices have risen 20% since the start of the war to a nearly 22-month high, according to AAA, edging up 4 cents again Wednesday to $3.58 per gallon. Crude oil is refined to produce gasoline. Based on Tuesday’s closing price for U.S. oil, the oil would account for about $2 of the cost of a gallon of gas. With a typical wholesale price at $2.64 per gallon, that leaves about 64 cents toward the cost of refining. On top of that, there are transportation and marketing costs as well as a variety of taxes.
Inflation in February was unchanged before the Iran war
Annual inflation was unchanged last month at 2.4%, according to the latest Consumer Price Index, released by the Trump administration on Wednesday. On a monthly basis, prices rose 0.3% in February, a faster pace than January’s 0.2%, according to the Bureau of Labor Statistics. The February inflation data was gathered before the United States and Israel launched the war against Iran. The two-week conflict has already pushed up energy costs and raised prices at the pump for Americans. Those increases could begin to show up even more in inflation data in the coming months. Already, last month energy prices were up 0.6%. Within that category, the biggest monthly jump was fuel oil prices, which were up 11.1%. Fuel for heating rose 3.1% and gasoline prices were up 0.8%. Meanwhile, electricity prices fell by 0.7% last month.
Runoff needed to pick successor to Rep. Marjorie Taylor Greene
Republican Clay Fuller will face Democrat Shawn Harris in a runoff to replace former Republican Congresswoman Marjorie Taylor Greene in Georgia’s 14th Congressional District. Fuller, who resigned his role as a district attorney to run in the special election, surged to the front of a crowded Republican field after snagging an endorsement from Donald Trump. But Trump’s support failed to narrow the field of a dozen GOP hopefuls who split the Republican vote and prevented Fuller from gathering the 50% majority voter needed to win yesterday’s contest. Harris, who narrowly led Fuller on Tuesday night, said the results showed that a Democrat could win in the heavily Republican district.
Britain says three ships hit near Strait of Hormuz
Three vessels near the Strait of Hormuz were hit by “unknown projectiles,” the Britain’s maritime agency said. One cargo ship caught fire after it was struck, but that was later extinguished and caused “no environmental damage.” The U.S. military said it destroyed 16 Iranian naval ships equipped to lay mines near the Strait of Hormuz. Israel launched a wave of strikes in the Iranian capital of Tehran overnight into Wednesday. Israel also said it struck targets in Beirut in Lebanon, and issued another sweeping evacuation order for residents in the south of the city. Iran’s military said it launched its “most intense and heaviest operation” since the start of the war overnight into Wednesday, according to state media. The attack targeted locations in Israel and U.S. assets in the region, Iran state media reported. The World Health Organization is warning that black rain – contaminated rainfall – resulting from pollution could pose health risks after strikes in Iran. After fuel depots were hit last week, including in Tehran, thick plumes of black smoke billowed into the air, mixing with precipitation in the air to create toxic rain.
Republicans told to stop talking about mass deportations
The Washington Post and Axios report that the Trump administration has told Republicans to stop talking about Donald Trump’s signature immigration policy of mass deportations. The policy, largely developed by Trump’s aide Stephen Miller, could result in 15 million to 20 million people being thrown out of the U.S. Those numbers were talked about by Trump. But Trump has been polling poorly when it comes to immigration policy and White House Deputy Chief of Staff James Blair and Rep. Lisa C. McClain who chairs the House Republican Conference now have told Republicans to avoid talking about mass deportations in advance of the November elections.
Severe storms hit central U.S.
A rash of ferocious storms ripped across the central U.S. overnight, spawning tornadoes and killing at least two people in northwest Indiana. A tornado briefly touched down near Pontiac, Illinois. The storm dropped hail over 5 inches in diameter just south of Kankakee, which could set a new Illinois state record for hail size. Thunderstorms also impacted Chicago, where half-dollar size hail fell. The Kansas City metro area reported hail up to 3.5 inches in diameter. Dallas-Fort Worth spent hours under a flash flood warning as storms hit the area. Farther south, a tornado was observed near Dudley, Texas, and baseball-sized hail was reported in Buffalo Gap, Texas. Tornado watches stretched from the Mexican border north to Michigan. About 55 million people from Texas and Louisiana to Pennsylvania faced storm warnings for Wednesday.
