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 The economic shockwaves of the Iran war have spread beyond the average American consumer cursing under their breath at the pump. Now the businesses that would have pocketed that additional dollar or more being spent on each gallon of gas are sounding the alarm. US gas prices, at around $4.56 a gallon on average, are at their highest levels since July 2022, according to data from the American Automobile Association. In a country where affordability was already the watchword when the US and Israel attacked Iran, it was only a matter of time before the pain spread.  Executives across retail, restaurants and packaged goods are increasingly worried about US shoppers with tighter budgets. Meanwhile, economists warn the disruptions from the war could lead to higher prices for a wider range of goods—including food. “They’re literally running out of money at the end of the month,” Kraft Heinz Chief Executive Officer Steve Cahillane said. “We’re seeing negative cash flows in the lower-income brackets where they’re dipping into savings.” —David E. Rovella Get the New Economy newsletter for in-depth analysis of global shifts in economic and geopolitical power. What You Need to Know TodayAfter a short lull, the US and Iran exchanged fire again on Thursday, according to the US military, which said it targeted sites in the Islamic Republic following Iranian attacks on American destroyers in the Strait of Hormuz. The flareup comes as President Donald Trump continues to wait for Tehran to accept or reject his proposal for ending the war (the New York Times reported Thursday afternoon that Iran has begun to discuss the offer). The US administration is hoping to quickly resolve the conflict, ending its blockade and having Iran reopen the strait to alleviate the global energy crisis. But Iran’s leaders have previously shown little sign of yielding on their nuclear program and accepting a moratorium on enriching uranium, both top US demands. And at home, the clock is ticking for Trump and his party. Republicans face midterm elections this November amid worsening poll numbers. And to make matters worse for the White House, a Washington Post report Thursday indicated US intelligence agencies believe Iran can hold out until the fall. Brazil set a monthly export record in April thanks to the Iran war, as high oil prices bolstered the South American country’s coffers. Exports totaled $34.15 billion on the month, a 14.3% increase from a year prior and the highest such figure in data going back to 1997. Brazil’s trade surplus rose 37.5% in the same period, hitting $10.5 billion. Brazil is Latin America’s largest oil producer and has benefited from higher crude prices spurred by the war. At the same time, it also has forced President Luiz Inacio Lula da Silva to try to shield consumers from rising costs locally by cutting fuel taxes and providing subsidies.  Three months after being handed a rare defeat at the hands of the Supreme Court, invalidating the underpinnings of his trade war, Trump’s newest attempt to levy tariffs has been dealt a judicial blow. A divided three-judge panel at the US Court of International Trade in Manhattan on Thursday tossed out his 10% duties under Section 122 of the Trade Act of 1974, which had never previously been invoked. The earlier duties were issued under a different law, the International Emergency Economic Powers Act, which similarly had never been used for that purpose. Citigroup set out fresh targets in a pitch to convince investors it can inch closer to its Wall Street rivals, after years of pushing to remedy regulators’ complaints and shed its laggard image.  The bank, which under Chief Executive Officer Jane Fraser has spent the past few years terminating thousands of employees, said it would reach a return on tangible common equity—a key metric of profitability—of about 14% to 15% in five years. The numbers, which were received with mixed reactions by investors, are still well below JPMorgan’s 20% return posted in 2025. Gerard Cassidy, an analyst at RBC Capital Markets, called the bank’s goals “underwhelming.” Spring Sale: Save 60% on your first year Get the numbers behind the narratives. Enjoy unlimited access to Bloomberg.com and the Bloomberg app, plus market tools, expert analysis, live updates and more. Offer ends soon. Unlock 60% offWhat You’ll Need to Know TomorrowFor Your CommuteBloomberg Tech returns to San Francisco on June 3-4. Led by Emily Chang and Tom Giles, we will convene the leading CEOs, investors and innovators shaping the future. Drawing on Bloomberg’s global newsroom and Terminal data, we’ll explore the capital, connectivity and ideas driving the industry forward. Register here. More from BloombergEnjoying Evening Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too:
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