US gas prices dip below $4 for 1st time since March but remain 25% higher than last year
NEW YORK (AP) — U.S. gas prices have fallen to just below $4 a gallon on average, bringing some relief to drivers who have seen soaring costs amid Washington’s war with Iran. But filling up is still more expensive than it was before the conflict began. According to AAA, a gallon of regular gasoline is now averaging at $3.999. It’s the first time since March that prices have been that low. The drop aligns with easing crude oil costs overall, as markets feel hopeful about an initial agreement between the U.S. and Iran to end the war. Still, American drivers are collectively paying a $1 more per gallon than they were in late February.
Stranded ships have begun transiting the Strait of Hormuz, maritime data company says
Maritime data company Lloyd’s List Intelligence says major shipowners have begun moving vessels through the Strait of Hormuz. For the first time in 110 days, ships owned by major companies are transiting the strait after effectively being marooned there since February. The strait is a critical passageway for the world’s oil and natural gas. Its closure has created a historic energy crisis. Tankers controlled by major ship owners Grimaldi Group, Cosco, Knutsen and NYK have passed through the strait. Lloyd’s List estimated that 550 merchant ships will need to prepare to exit the Persian Gulf, including 160 tankers, 200 bulk carriers, 60 container ships and 10 vehicle carriers.
The Trump administration says it is cutting student loan interest. Here are some facts and context
WASHINGTON (AP) — The Department of Education has announced a reduction in interest rates for federal student loans, describing it as part of a plan to make higher education more affordable. With growing numbers of borrowers in default, the Trump administration pitched the temporary, 1% reduction in student loan interest rates as a salve for those struggling with repayment. Education Undersecretary Nicholas Kent said Thursday that the change is a way of “making student loan repayment easier than ever” and of improving “the overall health of the federal student loan portfolio.” But the change does not apply to all borrowers, and those pursuing the reduction will need to meet eligibility criteria.
U.S. filings for unemployment benefits fall to 226,000 last week as layoffs remain historically low
WASHINGTON (AP) — The number of Americans applying for jobless aid fell modestly last week as layoffs remained in the same historically low range of recent years. U.S. applications for unemployment benefits in the week ending June 13 dropped by 4,000 to 226,000, the Labor Department reported Thursday. That’s in line with the 225,000 new applications forecast by analysts surveyed by the data firm FactSet. Weekly filings for unemployment benefits are considered representative of U.S. layoffs. The total number of Americans filing for unemployment benefits for the previous week ending June 6 rose by 24,000 to 1.81 million, slightly more than analysts predicted.
Federal regulators order grid operators to speed power to energy-hungry AI data centers
WASHINGTON (AP) — Federal regulators have ordered regional grid operators to help large energy users connect more quickly to the nation’s inefficient and aging electric transmission system. They're saying it's a step needed to accommodate surging demand from power-hungry artificial intelligence data centers. The Federal Energy Regulatory Commission said its order leaves states in control of retail electric rates, terms and conditions. The commission’s actions come as a backlash grows against data centers over concerns about the massive amounts of energy and water they use and fears about noise and air pollution, water shortages and a loss of open space or farmland.
Federal Reserve policymakers show support for rate hikes as Warsh reins in guidance
WASHINGTON (AP) — The Federal Reserve kept its key rate unchanged Wednesday yet nearly half the central bank’s policymakers said they could support a rate hike later this year, an unexpectedly aggressive outcome that would disappoint President Trump and suggests heightened concerns about persistent inflation. In an unusually short statement after their two-day meeting, Fed officials dropped language that had suggested their next move would be to cut their key rate. The brief statement reflects the influence of new chair Kevin Warsh, appointed by Trump, who has previously criticized the Fed for commenting too broadly on the economy.
Ukrainian drones set a Moscow refinery ablaze in a major attack on the Russian capital
Ukraine has hit a major Moscow oil refinery for the second time in a week, disrupting hundreds of flights at the capital's airports. Russian officials said Thursday that this is one of Ukraine's biggest drone attacks since Russia’s invasion over four years ago. The attack follows Ukrainian President Zelenskyy's coordination call with the U.S. and France, securing further support from the G7 summit. Ukraine aims to cut Moscow’s war revenue by targeting oil facilities. The Russian Defense Ministry claims its air defenses shot down 555 Ukrainian drones overnight. Zelenskyy says the attack is part of efforts to force Putin to negotiate.
Cuba’s Communist Party approves emergency economic plan opening to private enterprise
HAVANA (AP) — Cuba's Communist Party has approved an emergency economic package with unprecedented free-market measures. The plan aims to open the struggling island's economy by expanding private enterprise and attracting foreign investment. The document, not yet public, will be submitted to Cuba’s National Assembly. Recent protests in Havana highlight growing frustration over power outages. President Miguel Díaz-Canel said the plan is inspired by China and Vietnam's market-oriented reforms. The announcement comes as Cuba faces a U.S. energy blockade and ongoing economic challenges, including blackouts and shortages affecting nearly 10 million residents.
Stocks rise on Wall Street, erasing much of their loss from a day earlier
NEW YORK (AP) — Stocks closed higher on Wall Street, taking back most of their losses from a day earlier that were driven by anticipation that the Federal Reserve will likely raise interest rates this year in an effort to fight inflation. The S&P 500 rose 1.1% Thursday. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite jumped 1.9%. Crude oil prices wavered after the United States and Iran signed an agreement to end their war and reopen the Strait of Hormuz to oil tanker traffic. Treasury yields eased in the bond market.
Average 30-year U.S. mortgage rate falls to 6.47%, tracking lower bond yields as Iran war winds down
WASHINGTON (AP) — The average long-term U.S. mortgage rate fell this week, tracking Treasury yields that have retreated since a deal to end the war with Iran was announced. The benchmark 30-year fixed rate mortgage rate fell to 6.47% from 6.52% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.81%. Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also came down this week. That average rate fell to 5.81% this week from 5.84% last week. A year ago, it was at 5.96%, Freddie Mac said.
