US inflation hits three-year high as energy prices surge

US consumer inflation has climbed above 4% for the first time in three years, driven by a surge in energy prices linked to rising tensions with Iran. The inflation rate hit a new three-year high in May, with gas and energy products seeing the biggest price increases.

President Trump commented on the inflation figures, saying 'I love the inflation' while also claiming the US is taking millions of barrels of Iranian oil. Meanwhile, oil prices have been volatile, rising after Trump threatened to hit Iran 'very hard' but also falling on optimism about a potential US-Iran peace deal.