The Iran war pushes up U.S. inflation and intensifies the pressure on the Federal Reserve to raise interest rates.

According to a report by AXIOS, U.S. consumer prices remained high in August, with the energy shock triggered by the Iran war pushing inflation up again. The new round of price pressure is squeezing household budgets, while there are increasing signs that underlying inflation shows strong resilience across broader sectors of the economy. This data may further strengthen the Federal Reserve's case for a rate hike next week. At present, the inflation outlook is not optimistic. With the escalation of the Iran war, energy prices in September have risen sharply so far. International oil prices are currently hovering around $100 per barrel, higher than about $80 in mid-August. The American Automobile Association (AAA) said on Friday that the average diesel price in the U.S. has risen to a historic high of $6 per gallon. Less than two months remain before the U.S. midterm elections, and this new round of inflationary pressure may make it even harder for the Trump administration to convince voters that cost-of-living pressures are easing.