In March 2026, retail inflation in the United States rose to 3.3%, marking the highest rate in nearly two years, largely influenced by the ongoing conflict with Iran. This increase from 2.4% in the previous months reflects significant pressure from rising energy costs, with energy prices climbing by 12.5%. Notably, fuel oil prices soared by 44.2% and gasoline prices increased by 18.9%. These developments signal the economic repercussions of the Iran war, as US officials engage in peace talks with Iranian counterparts. Meanwhile, Europe is also feeling the inflationary effects, with the Euro Area experiencing a rise to 2.5% in March, driven by high energy prices. Countries like Italy and the United Kingdom are particularly vulnerable due to their reliance on gas imports, while nations like France and Spain benefit from greater energy diversification. Should negotiations fail, the global economy could face further challenges, particularly for heavy energy importers and those indirectly affected by rising costs.