US inflation rose sharply in March, marking one of the strongest monthly jumps in nearly two years. New government data shows prices increased 0.9% from February and 3.3% compared to last year. The rise in the Consumer Price Index signals renewed pressure on American households. It also shows how global conflict is affecting daily costs inside the United States. The sharp move is linked to higher energy prices and rising uncertainty in global oil supply. The main driver of the increase was energy. The energy index jumped 10.9% in March. Gasoline prices rose 21.2% in just one month. This alone made up most of the overall rise in inflation. Air travel also became more expensive. Airfares increased 2.7% in March and are nearly 15% higher than last year. These changes show how fuel costs quickly spread into transport and travel prices. Economists say the spike is the first clear signal of how the Iran conflict is affecting the US economy. The conflict disrupted global oil flows after tensions impacted the Strait of Hormuz. This route normally carries a large share of the world’s oil and gas supply. Any disruption there creates pressure on global energy markets. Higher oil prices then pass into US fuel costs and other goods. Core inflation, which removes food and energy prices, rose more slowly. It increased 0.2% in March and 2.6% over the year. This shows that outside of energy, price growth is still more controlled. However, economists warn that energy shocks often spread into other areas after a delay. Inflation has now moved above the 3% level for the first time since mid-2024. It had eased after peaking at 9.1% in 2022. It fell to around 2.3% last year before rising again in recent months. This new increase suggests that price stability remains fragile. Oil markets reacted strongly to the conflict. Prices spiked during the height of tensions. Even after a reported ceasefire and temporary reopening of the Strait of Hormuz, prices stayed high. US crude oil remains about 10% higher than before the conflict and nearly 30% higher since the start of the year. This keeps pressure on fuel and transport costs. The impact is also visible in broader economic data. US GDP growth for the final quarter of 2025 was revised down from 1.4% to 0.5%. This shows weaker economic momentum than expected. At the same time, producer price data also shows rising pressure. A key manufacturing index recorded its largest monthly jump in 13 years, signaling higher costs for businesses. Consumer confidence has also dropped sharply. A major survey showed a 10.7% fall, reaching its lowest level on record. Many respondents said they believe the Iran conflict is harming the economy. This drop shows that people are worried about future prices and financial stability. Despite rising prices, the job market remains strong. Employers added 178,000 jobs in March. The unemployment rate also fell to 4.3%. This mix of strong jobs and rising inflation creates a difficult situation for policymakers. The US Federal Reserve now faces a complex decision. Higher inflation could require interest rate increases. But higher rates could slow hiring and weaken the job market. The Fed previously raised rates sharply between 2022 and 2024 to control inflation. Rates are now lower but still restrictive compared to past years. Some economists believe the Fed may ignore the energy spike as temporary. They expect focus to remain on jobs and long-term inflation trends. Others warn that energy costs could continue to rise and spread into food and other goods. Future inflation reports are expected to stay high if oil prices remain elevated. Experts also warn that technical factors could add more pressure in the next data release. For now, the US economy is facing a mix of strong employment, rising prices, and global uncertainty.