NPR News: 05-12-2026 10AM EDT

US-Iran war escalates economic pressures and regional tensions in this NPR News Now roundup, alongside developments in Israeli politics and a US domestic nomination. Key updates center on surging inflation and war costs tied to the conflict, with additional reports on Middle East alliances, attacks, and President Trump's diplomatic moves.

Inflation Hits Three-Year High from War-Driven Energy Costs

Consumer prices rose 3.8% in April from a year earlier, the largest annual increase since May 2023 and up 0.6% from March alone. The Labor Department report attributes about 40% of the monthly jump to higher energy prices after Iran closed the Strait of Hormuz. Gasoline has increased by about $1.50 per gallon since the war started over 10 weeks ago, with diesel prices rising even more sharply. These costs are rippling through the economy: airline tickets are up more than 20% year-over-year due to soaring jet fuel expenses, and elevated trucking costs likely fueled a sharp monthly rise in grocery prices. The inflation surge underscores how the conflict is driving up everyday living expenses across multiple sectors.