The U.S. economy added 172,000 jobs in May, surpassing expectations and accelerating from the 115,000 jobs added in April, according to a report from the Bureau of Labor Statistics. The May figure also marked a slight pullback from March, when the economy gained 185,000 jobs.
The unemployment rate held steady at 4.3 percent in May. By historical standards, unemployment remains low.
The leisure and hospitality sector led the gains, adding 70,000 jobs in May. That figure far exceeded the sector's average of 14,000 jobs added per month over the past year. Job gains also came in local government and healthcare.
As ABC News reported, the Middle East conflict began on February 28 and prompted Iran to close the Strait of Hormuz, a maritime trading route that handles roughly one-fifth of global oil supply. The closure triggered one of the largest oil shocks ever recorded.
Although the U.S. is a net exporter of petroleum, oil prices are set on a global market, meaning American prices move alongside worldwide supply and demand. The average price of a gallon of gas stood at $4.24 as of Thursday, according to AAA data. That represents an increase of $1.26 per gallon since the war began, a roughly 42 percent jump in about three months. Grocery prices have also climbed as higher diesel costs have been passed along by suppliers.
A persistent rise in consumer prices could put pressure on the Federal Reserve to raise interest rates to slow inflation. Higher rates risk cooling overall economic performance, though the U.S. economy grew at a solid pace in the first three months of 2026 after sluggish performance at the end of last year.
Futures markets overwhelmingly expect the Fed to hold interest rates steady when policymakers meet next month, according to the CME FedWatch Tool.
