Inflation held steady last month before attack on Iran sent energy costs soaring

KANSAS CITY (AP) — Inflation stayed stubbornly elevated last month as gas prices rose in a snapshot of what consumer prices looked like before the U.S.-Israeli attack on Iran sent energy costs soaring. Wednesday’s data has been overtaken by the conflict that began when the U.S. and Israel attacked Iran on Feb. 28, which has caused wild gyrations in oil prices as shipping lanes through the Persian Gulf have suffered a rare shutdown. Gas prices have already jumped and are expected to push inflation much higher when inflation data for this month is released in early April.

IEA agrees to record release of emergency oil reserves in an effort to calm surging prices

BERLIN (AP) — The International Energy Agency has agreed to release the largest volume of emergency oil reserves in its history, in a bid to counter the effects on energy markets of the war in the Middle East. The Paris-based organization said Wednesday that it will make 400 million barrels of oil available from its members’ emergency reserves. It’s a larger stock than the 182.7 million barrels that were released in 2022 by the IEA’s 32 member countries in response to Russia’s invasion of Ukraine. Earlier Wednesday, Germany and Austria said they would release parts of their oil reserves following the IEA's request for members to release the 400 million barrels. Japan also said it will release some of its reserves starting Monday.

Iran war has blocked the Strait of Hormuz, a vital oil chokepoint. Reopening it is a big challenge

PARIS (AP) — Governments are working on plans to unblock vital oil chokepoint the Strait of Hormuz. The Iran war has effectively closed the waterway and pushed up gasoline prices. French President Emmanuel Macron is leading an international effort to reopen the waterway “when circumstances permit.” Retired naval officers say that using warships to escort tankers would make no sense during active combat. They say ships have little room in the waterway to evade attacks. Navies have recent escort experience in the Red Sea against Houthi drones and missiles. Experts say Hormuz poses far higher risks. Iran has missiles, drones, fast boats and naval mines. Insurers also drive decisions. Premiums for ships wanting to use the strait have surged.

War with Iran delivers another shock to the global economy

WASHINGTON (AP) — The war with Iran is doing collateral damage to the world economy. The conflict is driving up energy, grain and fertilizer prices and threatening food shortages in poor countries. It's also destabilizing fragile states such as Pakistan and complicating options for the inflation fighters at central banks like the Federal Reserve. And it's proving to be a new burden for American consumers already fed up with the high cost of living. Much of the pain is being caused by an effective closure of the Strait of Hormuz, which carries a fifth of the world's oil.

US stocks remain calm even as oil prices get back to climbing

NEW YORK (AP) — The U.S. stock market is remaining relatively calm, even as the price of oil gets back to climbing. The S&P 500 rose 0.1% Tuesday and could be heading for another day of modest moves following a punishing stretch of swings caused by the war with Iran. The Dow Jones Industrial Average dipped 72 points, and the Nasdaq composite rose 0.3%. Oracle led the market after the tech giant reported a stronger profit than analysts expected. Oil prices climbed even though Germany, Japan and others said they’ll release some of the oil in stockpiles they’ve set aside for emergencies.

Microsoft backs Anthropic, urging a judge to halt Pentagon's actions against AI company

SAN FRANCISCO (AP) — Microsoft is throwing its weight behind Anthropic in asking a federal court to block the Trump administration’s designation of the artificial intelligence company as a supply chain risk. Microsoft, in a legal filing, is challenging Defense Secretary Pete Hegseth’s action last week to shut Anthropic out of military work by labeling its AI products as a national security threat. The Pentagon took the action against Anthropic after an unusually public dispute over the company’s refusal to allow unrestricted military use of its AI model Claude. It asks for a judge to order a temporary lifting of the designation to allow for more “reasoned discussion.”

Trump visits Ohio and Kentucky to downplay war's effect on economy and target a top GOP antagonist

WASHINGTON (AP) — President Donald Trump is visiting Ohio and Kentucky as he tries to steady voters' concerns about the economy and to derail the reelection bid of a Republican rival. Trump is set to visit on Wednesday a pharmaceutical company in Cincinnati and talk up his Republican administration's efforts to lower prescription drug prices. Next, Trump will be in the district of Kentucky congressman Thomas Massie, who he's seeking to see defeated in the GOP primary next month. Trump's trip comes as the war in Iran has shaken markets and spiked gas prices when polls showed voters were already wary of his economic policies. Massie says on X this isn't the “America First” Trump promised.

FDA finds little evidence that a drug touted by Trump can help people with autism

WASHINGTON (AP) — The Food and Drug Administation is approving a generic drug for a very rare genetic disorder, but not for autism. On Tuesday, the U.S. agency said the drug helps children and adults who cannot get enough folate into the brain. That’s a major turnaround from announcements made at a White House news conference in September. At that event, President Donald Trump and the FDA commissioner said the drug was under review for approval in patients with autism. FDA officials say they narrowed the review to the strongest evidence. They say that evidence supports use only in patients with a specific genetic mutation.

Fragrant flower lei, synonymous with Hawaii, face competition from cheaper imports

HONOLULU (AP) — Flower garlands are synonymous with Hawaii. But the purple orchid lei that adorn the necks of tourists often aren't made in the Aloha State. Instead, they are imported from Thailand. Some Hawaii lawmakers think the state should be doing more to help the producers of lei made with locally grown, fragrant flowers. Ideas include labeling requirements that would identify Hawaii-made lei and a prohibition on state agencies buying imported ones. Some lei-sellers worry that the restrictions could boost prices to the point that Hawaii residents can't afford the lei that are so important to the state's culture.

Iran targets commercial ships, Dubai airport and oil facilities as concerns grow over global energy

DUBAI, United Arab Emirates (AP) — Iran has attacked commercial ships across the Persian Gulf and targeted Dubai International Airport, escalating a campaign of squeezing the energy-rich region as global energy concerns mounted, as American and Israeli airstrikes pound the Islamic Republic. Two Iranian drones hit near Dubai International Airport, home to the long-haul carrier Emirates, on Wednesday. Four people were wounded but flights continued. Iran’s joint military command also announced it would start targeting banks and financial institutions in the Middle East, a threat that would put at risk particularly Dubai, as well as Saudi Arabia and the island kingdom of Bahrain. Also, a projectile hit a container ship in the Strait of Hormuz, setting it ablaze. Most of the crew abandoned the vessel.