US Economy Surges, But Iran Blockade Casts Shadow

0:00It's April 30th, U.S. News Today starts now, AI-powered and nationwide. I'm Corey, with the story. U.S. economy picked up steam in the first quarter of 2026, growing at a 2% annual rate from January through March, that bounced back from a sluggish 0.5% expansion in the final three months of 2025, helping recover from last falls. 43-day federal government shutdown. Senate spending and investment jumped 9.3%, boosting overall growth by more than half a percentage point after dragging it down late last year. Consumer spending, which drives about 70% of activity, eased to 1.6% from 1.9%. Meanwhile, business investments surged 8.7%, possibly fueled by artificial intelligence pushes. The Iran conflict is casting a big shadow, with Iran blocking the strait of Hormuz, a key route for 1.5th of global oil, and liquefied natural gas.

1:00Energy prices are spiking, stoking inflation, and squeezing households. The Federal Reserve held its benchmark interest rate steady this week, pointing to high uncertainty from the war. Economists are scratching their heads over forecasts, saying the blockade creates uncharted territory, with no solid models to predict impacts. This latest report marks the first of three estimates from the Commerce Department. As things stand, the rebound shows resilience, but that strait blockade keeps everyone guessing on what's next for growth and prices.