Most NATO members have informed the United States they will not participate in a coalition to address Iran's blockade of the Strait of Hormuz, President Trump announced Tuesday. Trump criticized NATO allies on Truth Social, calling the alliance "a one way street" and claiming the U.S. no longer needs their assistance. The administration had sought participation from the U.K., France, Germany, Italy, Australia, Canada, Gulf countries, Jordan, Japan and South Korea.
The Iranian blockade has trapped Gulf oil supplies and created what Trump described as "the main crisis in the war for the White House." The U.S. military is conducting strikes on Iranian anti-ship positions while diplomatic efforts continue to build international support for securing shipping routes. The crisis prevents Trump from declaring victory and ending the conflict, according to the report.
Diesel fuel prices have surged to $5.04 per gallon, up 38% from $3.65 a month ago, according to AAA data. Regular unleaded gasoline prices rose 30% over the same period. The energy shock is adding new complications for Federal Reserve policymakers, who face inflation running hotter than expected even before the war's full economic impact appears in data.
The higher diesel costs will likely drive up prices for virtually all goods transported by truck, train or ship, potentially pushing core inflation measures higher. This creates additional challenges for the Federal Reserve as it prepares to release new economic projections Wednesday, with officials weighing whether to maintain their bias toward rate cuts this year. The pricing pressures come as supply chains already face stress from higher tariffs.