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Hawaii looks at suspending gasoline tax as prices rise
Hawaii Governor Josh Green said he was considering a pause in the state's gasoline tax due to the surge of prices at the pump three months into the Iran War. Gasoline prices on the island are among the highest in the United States. They average $5.58 a gallon - up $1 over last year's price of $4.48. Gas prices are soaring. Green stated in a press release that he was considering a temporary halt on the state and local taxes on gasoline for a part of summer to provide some relief to consumers. His office stated that the governor is evaluating?various options including executive actions. The state uses the revenue from taxes to maintain its infrastructure, such as roads and bridges. The American Automobile Association estimates that the average national gasoline price per gallon is $4.15. This is up over $1 from one year ago. The national average is still higher than 2025 but has dropped from $4.52 last month. California, Washington and Hawaii are the states that have been hardest hit, with an average price per gallon ranging from $5.07 to $5.83, according to AAA. In these states, the averages ranged from $3.64 to $4.68 per month a year earlier. Only a few states, including Indiana and Georgia, have taken concrete measures to provide relief. Utah passed a bill that reduced the state tax by 15% between July and December. The conflict is preventing oil from flowing through the Strait of Hormuz. Before the conflict, about one-fifth of the daily supply of oil in the world passed through this strait. Carl Davis, Research Director at the Institute for Taxation and Economic Policy said that "high energy prices are a worldwide problem and there is no way to fix it." Even if they suspend the gas tax, we will still pay a lot more than before the war began. Gas prices are too high to fix with a holiday. According to an Ipsos/May poll, more than 6/10 Americans believe that their household finances have been affected by higher gas prices. CNBC shared data from 'Moody's Analytics' that showed the average U.S. family has spent an extra $450 on fuel since the Iran War began on February 28. According to Moody's, this figure could rise to nearly $2,000 after a year if the conflict continues. Donald Trump, the U.S. President, has said that he expects gas prices will drop once the conflict ends. Even if U.S.-Iran agree on a peace agreement, oil industry experts believe that fuel prices will continue to be under pressure, even after the conflict ends. It will take many months for Middle East production to return to prewar levels. (Reporting and editing by Donna Bryson in Washington, Sanjeev MIglani, and Jasper Ward)
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Albania protests continue to grow as opposition to Kushner Resort persists
On Wednesday, thousands of Albanians took to the streets in Tirana's capital city for the largest protest yet against the construction of a resort planned by Donald Trump's son-in law Jared Kushner. The project is 'expected to cost about 5 billion euros.' It has sparked outrage among Balkan citizens because it is located near a wetland that protects flamingos, seals, and sea turtles. But also, there was a perception of a lack of transparency in the plans designed by the foreign investors. The crowd stretched for half a mile down one of the main boulevards in the city. Protesters chanted, "New Albania", and held signs saying "Albania isn't for sale". "The Zvernec project is a project... without transparency. This is the culmination of the events that have taken place in Albania over the past 35 years. "Enough is enough",?said Leand Lakrori, a protester. The protests represent the latest test of Rama's leadership. He has been in office since 2013, and many blame him for not doing enough to eradicate widespread corruption and improve basic services such as healthcare. Rama said in an interview with this week's newspaper that the project will go forward and be completed properly. He says that he has also made significant progress in reducing corruption, including the creation of an?special prosecutor's office (SPAK), which has launched a number of high-profile cases over the past few years. As well, violence broke out earlier this year when protesters called for the resignation of Rama’s deputy Belinda Balluku over allegations of?corruption. Rama dismissed?Balluku but mistrust still remains. "I'm here protesting, to end this saga of Albanian government. Fabio Bracaj said that the two parties are always the same. "We want to see a new era... a better country." Kushner's and Ivanka Trump's idea for the resort was born when they fell in love with Albania on a yacht a few years ago. Last month, protests broke out at a development site near Zvernec after developers built a fence to surround some land. Since then, the fence has been removed.
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Trump: 'I love inflation' as prices increase amid Iran war
Donald Trump on a Wednesday appeared to be embracing data that showed a rise in inflation of more than 4%. He told reporters that he "loved the inflation" and reiterated his belief prices would fall once the Iran War ended. When asked about U.S. data that showed consumer inflation increased in May at the fastest rate in three years, and if it could hurt his fellow Republicans months before November's midterm elections, Trump replied: "I love inflation." Trump then explained that he approved a plan to secretly move oil tanks through the Strait of Hormuz due to concerns about higher costs and inflation. Trump stated that his calculation was successful and that the operation was a success. Trump stated that the oil will drop back to its previous level when the war is over. It's going down. It will fall like a stone. Trump called the war against Iran a diversion and described it as a "national security issue" because the closing of a key shipping route by Tehran has increased the price of gasoline, fertilizer, and other goods. The Federal Reserve could be prevented from lowering interest rates by higher prices, something Trump has been calling for since he returned to power in the United States last year. Republicans want to keep control of the U.S. House of Representatives, but they are worried that a consumer backlash will hand the reins over to Democrats. The cost of living is a major issue for Americans. Trump won the 2024 presidential elections in part due to his promise to reduce inflation. However, his approval rating has fallen to its lowest point of his career, and this includes his handling of cost of living. The efforts to reopen Strait of Hormuz for tanker traffic to move goods has?so-far stalled. Industry executives and analysts have warned that the coming weeks could bring another oil price shock, severe enough to shake broader financial markets. Even if Trump and Tehran strike a deal soon it will take months for supplies to move, with disruptions predicted through 2026. While Americans are more protected from fuel price shocks than many other countries, higher energy prices could affect consumer spending in the long run. Trump said last month that Americans' financial problems were not a consideration as he pushed for a deal while threatening to attack Iran again: "I do not think about Americans financial situation." I don't care about anyone. "I only think of one thing: we cannot allow Iran to have a nuclear bomb." (Reporting and editing by Scott Malone, Chizu Nomiyama and Bo Erickson)
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Gold falls 3% amid inflation and rate hike concerns as the Middle East escalates
Gold prices dropped?more?than 3% on Tuesday as investors focused on U.S. key data to get clues about the direction of monetary policy. By 2:26 pm EDT (1826 GMT), spot gold had fallen 3.5% to $4,111.95 an ounce. This was its lowest price since March 23. U.S. gold futures for August delivered settled 3.6% lower, at $4133.3. Tai Wong, a metals trader independent, said that the markets are desperate for some good news after Friday's strong payrolls and Trump's earlier threat this morning to 'pay the price'? for not negotiating with Iran. Trump said that Iran took too long to reach a?deal and now would "pay the price." Trump said that the U.S. will attack Iran "very hard" if a peace deal cannot be reached. Iran launched drone and missile attacks against U.S. bases located in Jordan, Kuwait, and Bahrain as a retaliation to American strikes around the Strait of Hormuz on Iranian targets. Since the beginning of the war, in late February 2008, the price of gold has been under pressure due to the rising oil prices and fears about inflation. Gold is often seen as an inflation hedge, but higher interest rates can be detrimental to the metal. According to CME Group’s FedWatch tool, traders are pricing in about a 67% probability of an interest rate increase in the U.S. in December. The U.S. Labor Department reported on Wednesday that the Consumer Price Index, excluding energy and food items, gained 0.2% monthly after increasing 0.4% in April. Investors will have more information to assess the Federal Reserve's policy on monetary policies after the release of the U.S. Producer Price Index, which is scheduled for Thursday. Inflation, central bank purchases, and currency debasement are still concerns that continue to drive gold prices, according to Paul?Wong. He is a market analyst at Sprott Asset Management. Silver spot fell by 0.8%, to $64.83, platinum dropped by 2.6%, to $1681.88, while palladium increased 0.7%, to $1230.41. (Reporting and editing by Paul Simao, Leroy Leo, and Anushree mukherjee from Bengaluru)
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Gold falls 3% amid inflation and rate hike concerns as the Middle East escalates
Gold prices fell more than 3% Wednesday as investors focused on U.S. key data to get clues about the direction of monetary policy. By 11:40 am EDT (1540 GMT), spot gold had fallen 3.3% to $4,123.89 an ounce. This was its lowest price since March 23. U.S. Gold futures for August deliveries fell 3.3% to $4147.10. Tai Wong, a metals trader and independent, said that the markets are desperate for some good news following Friday's strong payrolls as well as President Donald Trump's warning earlier today morning that Iran would 'pay the price' for not having negotiated a deal. Trump said that Iran took too long to negotiate a peace deal, and now would "have to pay a price." Trump said that Iran had taken too long to negotiate a deal and would now "pay the price." Iran launched drone and missile attacks against U.S. bases located in Jordan, Kuwait, and Bahrain as a retaliation to American strikes around the Strait of Hormuz on Iranian targets. Since the beginning of the war, in late February 2008, the price of gold has been under pressure due to the rising oil prices that fuel inflation fears and higher interest rates. Gold is often seen as an inflation hedge, but higher interest rates can be detrimental to the metal. According to the FedWatch tool of CME Group, traders are presently?pricing about a 66% probability that U.S. rates will be raised in December. According to the U.S. Labor Department, on Wednesday, the Consumer Price Index (excluding food and fuel) rose?0.2% monthly after increasing 0.4% in April. Investors will have more information to assess the Federal Reserve's monetary policies after the release of the U.S. Producer Price Index on Thursday. In a recent note, Paul Wong, market strategist at Sprott Asset Management said that inflation, central bank buying, and currency debasement fears continue to "support" gold. Spot silver dropped 1% per ounce to $64.70, platinum fell 2% to 1,692.92, while palladium rose by 1.3% to $1,000.73. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Paul Simao)
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Trump on Iran: We will be very aggressive with them
U.S. president Donald Trump announced on Wednesday the United States will?attack?Iran'very hard' if a peace deal cannot be reached. He also said that the United States had been taking oil from Iran. Trump told reporters in the White House that he would be "attacking them very hard" after Iran shot down an Apache helicopter on the Strait of Hormuz. The president has re-iterated the fact that Iran would be attacked on Wednesday. Trump revealed that?the United States is taking oil out of Iran. Trump revealed that the United States has been removing millions of barrels per night of oil from Iran. Trump said that "millions of barrels" of oil had been extracted, which is why the price of a barrel of oil was $85-90 instead of $250. He did not provide any other details. Trump said that the United States was still trying to reach a deal. Trump said that he wanted a "deal that is meaningful and that works" in the Iran negotiations. Trump said that Iran had 'already agreed' to refrain from acquiring a nuclear weapon. However, the agreement has yet to be signed. (Reporting and editing by Bo Erickson, Doina Chiacu, and Michelle Nichols)
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Cepeda, a Colombian leftist, says he will accept the election results but does not rule out protests
Ivan Cepeda, the leftist candidate for president in Colombia, said that he will accept the results of this month's runoff vote - even if it does not favor him. He also called on his supporters to 'protest peacefully' if their rights were not respected. Cepeda is a 63 year old senator who has been an ally to President Gustavo Petro for many years. He will be facing right-wing lawyer Abelardo De La Espriella on June 21, in what should be a difficult runoff. Cepeda, a 63-year-old senator and ally of President Gustavo Petro, will face right-wing lawyer Abelardo De La Espriella in what is expected to be a challenging June 21 runoff. Cepeda has pledged to deepen Petro’s social and economy reforms and pursue talks with armed group, while De La Espriella campaigned for a security crackdown as well as more business friendly policies. De La Espriella defeated Cepeda in the first round by 670,000 votes. Although he didn't get the necessary majority to avoid a second-round, he will likely draw support from other right-wing candidates who are now out of contention. "I am a democrat. Cepeda stated in an interview Tuesday night that he was a democrat, but that did not excuse him from his responsibility to ensure that the results were transparent. Cepeda acknowledged the results of the first round a week after the election, initially citing an error in the electoral list and unusual voting at certain polling stations. De La Espriella claimed this week, without providing any evidence, that he knew of a alleged plan to start violent protests by the left if he won. Cepeda stated that he would only 'call for protests' if the rights of people were violated. Cepeda, who rejects violence, said: "I call upon the people to defend themselves through constitutional and legal methods." Cepeda said that while the exercise is important for institutions to function, it is equally important that citizens are engaged. If Cepeda is elected, he will seek to implement deeper reforms in healthcare, education, and pensions. He also plans to distribute land to farmers to help make Colombia a global agricultural power. He said that he would rather reach an agreement with business leaders in order to reduce tax fraud and provide resources to his government than pursue tax reforms through congress. He said that a fiscal agreement, or tax pact would be better than a reform which could not be popular with all sectors of the economy. Cepeda stated that it would be hard to revive oil exploration under his possible government because Petro's prohibition on new exploration has shifted focus in the economy and the environmental policy must recognize an "intense" crisis. He said that he was open to the possibility of gas exploration and mining. Cepeda stated that the relationship with the United States - Colombia's largest trading partner - whose government had repeatedly clashed with Petro - will be "managed with sovereignty and respect" to "build innovative bilateral?solutions". Cepeda stated that he would seek to promote peace talks with illegal armed groups, in order to bring an end to six decades of conflict, and he would also work to pass legislation to allow criminal groups to receive legal benefits when they disarm. Petro's attempts to demobilize over 20,000 combatants has shown little tangible results, and armed group membership has increased by thousands during his tenure. Reporting by Luis Jaime Acosta, Nelson Bocanegra and Julia Symmes Cobb. Editing by Sanjeev MIglani and Julia Symmes Cobb.
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Abu Dhabi's wealth fund L'IMAD acquires stake in utility TAQA
Abu Dhabi's newest sovereign fund, L'IMAD 'Holding', led by the emirate’s 'crown prince', has increased its share in state-owned 'power and water utility TAQA' by a further '8.09%', TAQA announced on Wednesday. Abu Dhabi Power Corporation (a subsidiary of the fund) has completed the purchase of 9.1 billion TAQA share, bringing the total of its shares in the company to 98.12%. TAQA announced this in a bourse statement. In a separate filing, Two Point 'Zero Group stated that it sold TAQA's entire stake to AD Power in order to continue its "ongoing strategic aims and portfolio optimization." The company did not disclose financial details. According to calculations based upon TAQA's close share price of the same day, the?stake purchased by AD Power would be valued at around 21,56 billion dirhams (5.87 billion dollars). Abu Dhabi is the home of sovereign funds that collectively manage assets worth more than $1.8 trillion. L'IMAD gained a global reputation last year when it was one of the Gulf's backers in Paramount Skydance Corp's bid to buy Warner Bros Discovery. After acquiring control of ADQ, it has become a?major investment player with assets estimated at $300 billion. The?Crown Princess Sheikh Khaled Bin Mohamed bin Zayed Al Nahyan of Abu Dhabi chairs the board.
The FOREX Dollar falls as US inflation data holds off rate hike
Dollar fell on Wednesday, after data revealed that U.S. consumer prices rose to their highest level in 3 years in May. The reading, however, was in line economists' predictions, and did little to increase?the odds of a Federal Reserve interest rate hike this year. U.S. consumer prices rose at their fastest rate in three years, as the Iran War increased the cost of gasoline and energy products.
Bureau of Labor Statistics of the Labor Department announced on Wednesday that the Consumer Price Index had increased by 4.2% over the 12-month period ending in May. This is the biggest gain since April 20,23. The economists polled had predicted the CPI to increase 4.2% on an annual basis.
Karl Schamotta is the chief market strategist for Corpay, a Toronto-based company. He said that the Federal Reserve has not yet been able to use the soaring prices of energy in its core measures.
The dollar index (which measures the U.S. dollar against six other currencies) was down 0.1% at 99.875, but still not far off the two-month-high of 100.214 that was reached on Monday.
Schamotta stated that traders are preparing for a neutral statement from officials at the Federal Open Market Committee meeting next week, and have modestly reduced expectations of a rate increase by year's end.
The traders of short-term U.S. rates have backed away from betting that the Federal Reserve will raise interest rates as early as September. However, they remain confident that an increase in rate is coming by October. According to a large majority of economists polled, the Fed will keep its key rate unchanged for the remainder of 2026.
Jason Pride, the chief of investment strategy and research for wealth management firm Glenmede, stated in a report that "after three months of high energy costs, there has been no meaningful pass-through" to core goods. This is the most important data in the report today that shows the Iran shock has not spread to a generalized episode of inflation.
Even so, traders were on edge.
U.S. president Donald Trump announced on Wednesday the United States would attack Iran "very strongly" if a peace deal was not reached. He also revealed that the U.S. Military secretly escorted vessels carrying more than 100,000,000 barrels of crude oil out of Strait of Hormuz to moderate global oil prices.
The Yen remains in focus
A Bank of Japan rate increase at its policy meeting on June 16 is almost completely?priced-in, which means that it will not trigger a significant turnaround in the yen's weakness even if it occurs.
Tony Sycamore said that a hawkish comment from Governor (Kazuo Ueda) would be needed to signal the BOJ's next hike could move from December to September – with the?possibility a third increase before the end of the year," Tony Sycamore wrote in a note. Without that, or something similar the Ministry of Finance will likely have to use its chequebook again to defend the currency. The Japanese yen remained steady at 160.475 against the dollar. It continues to hover near the 160 level, which is widely considered a "line in the sand" for official intervention. According to a poll of economists, the BOJ is likely to raise its key rate in this month's quarter and again next year. This will bring borrowing costs up to 1.25% at the end of the calendar year.
DOLLAR SOFTNESS On Wednesday, the Bank of Canada kept its benchmark rate at the same level. Governor Tiff MacKlem said that the central banks would not hesitate to increase rates to control inflation.
The pound was 0.1% stronger against the dollar Wednesday as investors closely watched the latest escalation of tensions between Iran and the U.S. ahead of the UK GDP data on Friday.
The leading cryptocurrency, bitcoin, was almost flat on the day. It now stands at $61,949. (Reporting and editing by Kevin Buckland; Will Dunham, Jan Harvey and Kevin Buckland; Additional reporting and editing by Sophie Kiderlin and Satoshi Sugyama in London; Reporting by Saqib Ahmed Iqbal; Additional reporting and editing by Sophie Kiderlin and Satoshi Sugyama in Tokyo)
(source: Reuters)