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Iran-war bills come due across the United States as gas tops $4 in every state and the Fed signals possible hikes

AAA reported on May 20 that regular gasoline crossed $4 a gallon in all 50 states and DC, with seven above $5 and California at $6.15; the national average of $4.56 is up 53% since the war with Iran began on Feb 28. April Fed minutes showed a majority of officials open to raising rates if inflation persists, even as grocery prices ran 2.9% higher year-over-year. Trump and Netanyahu held a tense call over a Qatar-Pakistan peace memo; small-business profits fell 1.3% on a 43% fuel surge; SpaceX filed for a $1.75 trillion IPO; and Nvidia beat Q1 revenue on AI demand.

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US gasoline tops $4 in all 50 states as Iran war nears three-month mark

AAA reported on May 20 that average regular-gasoline prices crossed $4 a gallon in all 50 states and the District of Columbia, with seven states above $5 and California at $6.15. The national average of $4.56 is up 53% since the U.S.-Iran war began on Feb 28, with the Strait of Hormuz effectively closed throughout the conflict. GasBuddy's Patrick De Haan warned the average could break the all-time $5.03 record if the strait remains shut through mid-summer.

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Iran warns of widening war as US-Iran talks continue; Israel faces global backlash over flotilla treatment

Iran's army threatened to 'open new fronts' beyond the region if it comes under renewed attack, as US President Donald Trump said talks with Tehran were in the final stages but added he was 'in no hurry.' Meanwhile, global outrage mounted over a video posted by Israeli National Security Minister Itamar Ben Gvir showing detained Gaza aid flotilla activists kneeling with hands tied, prompting multiple countries to summon Israeli ambassadors.

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Fed minutes: majority of officials see possible rate hikes if inflation persists due to Iran war

A majority of Federal Reserve officials believed the central bank could raise interest rates if inflation stays high, according to minutes from the April 28-29 policy meeting. The fallout from the Iran war has driven up energy and commodity prices, complicating the outlook as Kevin Warsh prepares to become Fed chair. The minutes also showed that many officials raised concerns about cybersecurity risks, particularly from AI-powered attacks on financial systems.

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Trump and Netanyahu hold tense call over revised Iran peace memo drafted by Qatar and Pakistan

U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu held a tense phone call Tuesday to discuss a revised peace memo drafted by Qatar and Pakistan aimed at ending the war against Iran, three sources told Axios. Netanyahu was left incensed, with one source saying his "hair was on fire" after the call, as he seeks to resume hostilities against Iran. Trump said Wednesday that talks are in their "final stages" and that Netanyahu "will do whatever I want him to do."

Day in Review

All Events

Every other event tracked in United States, with a one-line preview.

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U.S. grocery prices rise 2.9% in April, highest since August 2023, driven by energy costs and tariffs

U.S. grocery prices rose 2.9% year-over-year in April 2026, the highest since August 2023, driven by fuel price spikes from the Iran war blocking the Strait of Hormuz, tariffs, and adverse weather. Tomatoes are 40% more expensive, coffee up 19%, and beef prices have surged 15-18%. Economists warn the full impact of energy costs on food prices may take three to six months to materialize, with potential further increases in fertilizer and transport costs. Eggs are 39% cheaper due to recovery from avian flu.

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U.S. grocery prices rose 2.9% year-over-year in April 2026, the highest since August 2023, driven by fuel price spikes from the Iran war blocking the Strait of Hormuz, tariffs, and adverse weather. Tomatoes are 40% more expensive, coffee up 19%, and beef prices have surged 15-18%. Economists warn the full impact of energy costs on food prices may take three to six months to materialize, with potential further increases in fertilizer and transport costs. Eggs are 39% cheaper due to recovery from avian flu.

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Small business profits plunge as Iran war drives gasoline prices up 43%

Small business profitability in April fell 1.3%, the biggest decline in two years, as gasoline prices surged 43% year-over-year due to the Iran war and the closure of the Strait of Hormuz. Small businesses spent 31% more on gasoline, squeezing profits amid rising labor costs and slowing sales. Despite this, new business applications remain near record highs, averaging 470,000 per month in 2025, 66% above pre-pandemic levels.

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Small business profitability in April fell 1.3%, the biggest decline in two years, as gasoline prices surged 43% year-over-year due to the Iran war and the closure of the Strait of Hormuz. Small businesses spent 31% more on gasoline, squeezing profits amid rising labor costs and slowing sales. Despite this, new business applications remain near record highs, averaging 470,000 per month in 2025, 66% above pre-pandemic levels.

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SpaceX files for IPO, targeting record $1.75 trillion valuation

SpaceX publicly filed for an initial public offering on the Nasdaq under ticker 'SPCX', targeting a valuation of up to $1.75 trillion. The company disclosed $18.67 billion in 2025 revenue and a $2.6 billion operating loss, with Starlink as the primary revenue driver. Elon Musk will retain 79% voting control via a dual-class structure. The IPO is expected to raise around $75 billion, potentially surpassing Saudi Aramco's record. Proceeds will fund Starship development, Mars colonization, and AI data centers in space.

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SpaceX publicly filed for an initial public offering on the Nasdaq under ticker 'SPCX', targeting a valuation of up to $1.75 trillion. The company disclosed $18.67 billion in 2025 revenue and a $2.6 billion operating loss, with Starlink as the primary revenue driver. Elon Musk will retain 79% voting control via a dual-class structure. The IPO is expected to raise around $75 billion, potentially surpassing Saudi Aramco's record. Proceeds will fund Starship development, Mars colonization, and AI data centers in space.

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Nvidia beats Q1 revenue expectations as AI infrastructure demand surges

Nvidia reported quarterly revenue exceeding analyst forecasts, driven by strong demand for AI chips and data center products. CEO Jensen Huang described the buildout of AI factories as the largest infrastructure expansion in history, signaling continued rapid growth in the sector. The results underscore Nvidia's dominant position in the semiconductor industry and its role in the AI boom.

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Nvidia reported quarterly revenue exceeding analyst forecasts, driven by strong demand for AI chips and data center products. CEO Jensen Huang described the buildout of AI factories as the largest infrastructure expansion in history, signaling continued rapid growth in the sector. The results underscore Nvidia's dominant position in the semiconductor industry and its role in the AI boom.

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Trump signals tolerance for potential Fed rate hikes under Warsh

Background: President Trump had repeatedly attacked Fed Chair Powell for not cutting rates, leading to a DOJ investigation that was later dropped, allowing Trump's nominee Kevin Warsh to become Fed chair. Now, Trump says Warsh can 'do what he wants' on rates, even as markets price in a higher probability of a rate hike than a cut this year due to inflation from the Iran war. Treasury Secretary Bessent expects temporary inflation followed by disinflation. The early question for Warsh is whether to look through the inflation surge driven by energy disruptions. Minutes of the late April Fed meeting, due Wednesday, will shed light on a meeting where four officials dissented, three of whom wanted to remove language implying the next policy move will be toward lower rates.

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Background: President Trump had repeatedly attacked Fed Chair Powell for not cutting rates, leading to a DOJ investigation that was later dropped, allowing Trump's nominee Kevin Warsh to become Fed chair. Now, Trump says Warsh can 'do what he wants' on rates, even as markets price in a higher probability of a rate hike than a cut this year due to inflation from the Iran war. Treasury Secretary Bessent expects temporary inflation followed by disinflation. The early question for Warsh is whether to look through the inflation surge driven by energy disruptions. Minutes of the late April Fed meeting, due Wednesday, will shed light on a meeting where four officials dissented, three of whom wanted to remove language implying the next policy move will be toward lower rates.

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Incoming Fed Chair Warsh faces challenges in shrinking balance sheet

Background: Incoming Federal Reserve Chair Kevin Warsh inherited a bond market turmoil with the 30-year Treasury yield surging to 5.11%, the highest since 2007, driven by energy supply disruptions, AI-driven capital demand, and large fiscal deficits. Today: Warsh aims to reduce the Fed's $6.7 trillion balance sheet, but faces significant risks including potential destabilization of money markets and rising borrowing costs. Critics, including Fed Governor Michael Barr, argue the effort is misguided and could threaten financial stability. The debate highlights tensions between monetary policy goals and financial market stability.

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Background: Incoming Federal Reserve Chair Kevin Warsh inherited a bond market turmoil with the 30-year Treasury yield surging to 5.11%, the highest since 2007, driven by energy supply disruptions, AI-driven capital demand, and large fiscal deficits. Today: Warsh aims to reduce the Fed's $6.7 trillion balance sheet, but faces significant risks including potential destabilization of money markets and rising borrowing costs. Critics, including Fed Governor Michael Barr, argue the effort is misguided and could threaten financial stability. The debate highlights tensions between monetary policy goals and financial market stability.

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Global outcry after Israeli minister Ben-Gvir taunts detained Gaza flotilla activists

Israeli National Security Minister Itamar Ben-Gvir posted a video showing hundreds of detained activists from the Global Sumud Flotilla kneeling and handcuffed at Ashdod port, sparking widespread international condemnation. The flotilla, carrying 428 activists from 44 countries, was intercepted by Israeli naval forces in international waters while attempting to deliver aid to Gaza. Multiple countries including Italy, France, the UK, Germany, Canada, and Australia summoned Israeli ambassadors or issued condemnations. Israeli Prime Minister Netanyahu criticized Ben-Gvir's actions as inconsistent with Israeli values and ordered the activists' deportation, while Foreign Minister Sa'ar also distanced himself from the minister's conduct.

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Israeli National Security Minister Itamar Ben-Gvir posted a video showing hundreds of detained activists from the Global Sumud Flotilla kneeling and handcuffed at Ashdod port, sparking widespread international condemnation. The flotilla, carrying 428 activists from 44 countries, was intercepted by Israeli naval forces in international waters while attempting to deliver aid to Gaza. Multiple countries including Italy, France, the UK, Germany, Canada, and Australia summoned Israeli ambassadors or issued condemnations. Israeli Prime Minister Netanyahu criticized Ben-Gvir's actions as inconsistent with Israeli values and ordered the activists' deportation, while Foreign Minister Sa'ar also distanced himself from the minister's conduct.

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White House AI executive order to mandate voluntary pre-release review of frontier models

The Trump administration is finalizing an executive order on artificial intelligence and cybersecurity that would require developers of advanced AI models to voluntarily submit them for federal review up to 90 days before public release. The order establishes a multi-agency benchmarking process led by the NSA to define 'covered frontier models' and creates a voluntary partnership with industry to secure critical infrastructure. The directive reflects growing concern over AI-powered cyber capabilities and follows the release of Anthropic's powerful Mythos model.

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The Trump administration is finalizing an executive order on artificial intelligence and cybersecurity that would require developers of advanced AI models to voluntarily submit them for federal review up to 90 days before public release. The order establishes a multi-agency benchmarking process led by the NSA to define 'covered frontier models' and creates a voluntary partnership with industry to secure critical infrastructure. The directive reflects growing concern over AI-powered cyber capabilities and follows the release of Anthropic's powerful Mythos model.

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CENTCOM chief requests new tech for underground targets as lawmakers grill him on Iran war conduct

Admiral Brad Cooper, head of US Central Command, previously testified before the Senate on the fiscal 2027 budget and military posture amid a fragile US-Iran ceasefire. In his first House Armed Services Committee appearance since the Iran war began, he requested increased investment in electronic warfare, counter-drone systems, and weapons for hard and deeply buried targets, noting adversaries are 'going underground.' Lawmakers sharply questioned the war's legal basis and conduct, with Democrats criticizing continued hostilities despite a declared ceasefire and the administration's shifting justifications. Rep. John Garamendi accused the Pentagon of disregarding Congress and the Constitution by continuing military operations after the ceasefire. Rep. Seth Moulton challenged Cooper on the war's planning and human cost. Cooper confirmed the investigation into the Feb. 28 airstrike on an Iranian girls' school is nearing completion and committed to releasing an unclassified version.

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Admiral Brad Cooper, head of US Central Command, previously testified before the Senate on the fiscal 2027 budget and military posture amid a fragile US-Iran ceasefire. In his first House Armed Services Committee appearance since the Iran war began, he requested increased investment in electronic warfare, counter-drone systems, and weapons for hard and deeply buried targets, noting adversaries are 'going underground.' Lawmakers sharply questioned the war's legal basis and conduct, with Democrats criticizing continued hostilities despite a declared ceasefire and the administration's shifting justifications. Rep. John Garamendi accused the Pentagon of disregarding Congress and the Constitution by continuing military operations after the ceasefire. Rep. Seth Moulton challenged Cooper on the war's planning and human cost. Cooper confirmed the investigation into the Feb. 28 airstrike on an Iranian girls' school is nearing completion and committed to releasing an unclassified version.

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US and Israel reportedly considered installing Ahmadinejad as Iran's leader after regime collapse

According to a New York Times report, the US and Israel developed a regime-change strategy for Iran that included former President Mahmoud Ahmadinejad as a potential successor. The plan involved freeing Ahmadinejad from house arrest via an airstrike, but an Israeli strike on a security post intended to free him instead killed guards and injured him. The opening strikes of the conflict also killed Supreme Leader Ayatollah Ali Khamenei. Ahmadinejad, who had fallen out with the regime after his presidency, has since gone into hiding. The plan has since unraveled. The report indicates broader US-Israeli ambitions beyond the publicly stated goal of eliminating Iran's nuclear capabilities and highlights the complex and controversial nature of US-Israeli regime change planning in Iran.

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According to a New York Times report, the US and Israel developed a regime-change strategy for Iran that included former President Mahmoud Ahmadinejad as a potential successor. The plan involved freeing Ahmadinejad from house arrest via an airstrike, but an Israeli strike on a security post intended to free him instead killed guards and injured him. The opening strikes of the conflict also killed Supreme Leader Ayatollah Ali Khamenei. Ahmadinejad, who had fallen out with the regime after his presidency, has since gone into hiding. The plan has since unraveled. The report indicates broader US-Israeli ambitions beyond the publicly stated goal of eliminating Iran's nuclear capabilities and highlights the complex and controversial nature of US-Israeli regime change planning in Iran.

Frequently Asked

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What is the national average gas price in the U.S. as of May 20?
The national average for regular gasoline is $4.56 per gallon, up 53% since the war with Iran began on February 28.
Which states have gas prices above $5?
California, Washington, Oregon, Nevada, Hawaii and Alaska all had average gas prices above $5 per gallon as of May 20.
How did the Federal Reserve respond to Iran-war inflation?
The Fed's April 28-29 minutes, released May 20, showed a majority of officials believe the central bank may have to raise rates if Iran-war inflation persists.
What was the grocery inflation rate in April?
The Bureau of Labor Statistics reported April grocery prices rose 2.9% year-over-year, the highest since August 2023, driven by Hormuz disruption and tariffs.
What is SpaceX's target valuation for its IPO?
SpaceX filed for an IPO on Nasdaq under ticker SPCX, targeting a record $1.75 trillion valuation, with $18.67 billion in 2025 revenue.