The US government has been forced to pay billions in refunds to companies that were hit by Donald Trump’s ‘liberation day’ tariffs. The US has paid out $81bn (£61bn) this fiscal year after the supreme court ruled the tariffs were illegal. Lucy Hough speaks to international editor Chris Michael

Recent strikes have sent oil prices climbing again, with average gas price per gallon up by $0.70 compared with 2025

Inflation cooled to an annual rate of 3.5% in June as the brief US-Iran ceasefire, which has since ended, brought energy prices down, according to new data from the Bureau of Labor Statistics.

The consumer price index (CPI), which measures a basket of goods and services, has been elevated since the start of the war, largely because of higher energy prices. After mostly staying under 3% since mid-2024, CPI reached a three-year high of 4.2% in May – up from 2.4% in February. Month-over-month, CPI fell 0.8% in June, the largest one-month decrease since April 2020.

Energy prices later stabilise after Trump abandons plan for 20% levy on traffic through strait of Hormuz

Oil and gas prices jumped and expectations of interest rate rises in Europe increased on Tuesday after the US carried out a third night of military strikes against Iran.

However, they later eased back after Donald Trump said he would abandon his proposal for the US to levy a 20% fee on cargo passing through the strait of Hormuz.