U.S. oil wholesale prices rise 6.0% year-on-year in April, highest since 2022, amid Iran war

Wholesale prices in the United States rose sharply in April, pushed by a surge in energy costs related to the Iran war, registering their highest 12-month increase in more than three years.

The Producer Price Index (PPI) rose 6% for the 12 months ending in April, the Bureau of Labor Statistics (BLS) said Wednesday, the highest level since December 2022. Month-on-month prices rose by 1.4%, sharply higher than expectations and at their highest level since March 2022.

The world's largest economy has been battling stubbornly high inflation since the pandemic, with President Trump's signature tariffs and the U.S.-Israeli war with Iran piling pressure on prices.

Iran's retaliation to U.S.-Israeli strikes has seen the Middle East engulfed in violence, with Tehran virtually blocking the vital Strait of Hormuz waterway through which a fifth of global energy supplies typically pass.

"Over 40% of the April advance in prices for final demand goods can be attributed to a 15.6% increase in the index for gasoline," the BLS said.