00:01A busy day at a gas station in Jackson, Mississippi.
00:05But for the customers pulling in today, money is tight.
00:09War in the Middle East has driven up gas prices,
00:11and that's pushed inflation in the U.S. to its highest level in three years.
00:16Some places, we're still $4 a gallon for gasoline.
00:20And then diesel, ugh, don't get me started on that.
00:23It's just, it's insane.
00:26Yeah, everything's a lot higher.
00:28I know when me and my wife first got married, I could just, like groceries, for instance,
00:32I could go to Walmart and fill up a whole buggy for maybe $200.
00:36Now $200 won't even get you half a buggy.
00:38In Washington, U.S. President Trump says this is a temporary setback
00:42and that prices will go down once the war ends.
00:45Despite running on promises to curb inflation, he is embracing the situation.
00:50Are you concerned, Mr. President, about the latest inflation number which came out this morning?
00:55Could that be a headwind for Republicans?
00:56No, I love it. The numbers were great.
00:59But the war doesn't show signs of stopping.
01:02On Wednesday, U.S. Defense Secretary Pete Hegseth announced fresh strikes on Iran, now reportedly finished.
01:08CENTCOM, Central Command, will be busy tonight because President Trump said we will be hitting Iran hard,
01:14and we will be, because Iran has a chance to make a good deal, a great deal,
01:21to codify what they said they've been willing to do, and they haven't been willing to do it.
01:24Iran's state TV has reported explosions, bringing an Iranian response.
01:29Iran says it hit two ships in the Strait of Hormuz, a key gateway for oil, gas, and fertilizer that's
01:35become a linchpin of this war.
01:37The U.S. says its warships are all safe and disputes Iran's statement that the strait is shut to traffic.
01:43Still, tanker traffic is stuck in place, and there's a chance of a possible further oil price shock in the
01:49coming weeks.
01:50When people expect inflation to be high, prices to continue to rise or even rise more rapidly,
01:58they behave differently than when they expect stable prices.
02:01And it's the expectation of rising prices that can make people go out and buy quickly or sooner, not put
02:07off big purchases.
02:08And that makes inflation worse.
02:11And that could hurt Trump's Republican Party in midterm elections, now less than five months away.
02:17Because even if the U.S. and Iran reach a deal soon, supplies could still take months to return to
02:22normal.
02:23Scott Huang and John Van Trieste for Taiwan Plus.
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