United States President Donald Trump has lauded the condition of the national economy following the signing of a memorandum of understanding (MoU) between the United States and Iran.
The agreement, reached on Wednesday, is intended to conclude the US-Israel war on Iran. Writing on his Truth Social platform, the president asserted that “OIL IS FLOWING”, “THE STOCK MARKETS ARE ROARING”, and that “JOBS ARE AT RECORDS” while prices are falling, reports Al Jazeera.
While the Dow Jones Industrial Average indeed reached a record closing high of 51,999.67 on Tuesday, it subsequently fell to 51,494.99 on Wednesday. This decline followed an announcement by the US Federal Reserve that benchmark interest rates would remain within the 3.5 to 3.75 per cent range.
Midday trading on Thursday saw the Dow rise by 0.35 per cent to 51,671, though the Nasdaq Composite Index and S&P 500 both experienced losses.
Professor Michael Klein of The Fletcher School at Tufts University observed that market success does not necessarily reflect the reality for the 38 per cent of Americans who are not investors.
Regarding energy costs, petrol prices have begun to decrease, with the American Automobile Association (AAA) reporting an average of $3.99 per gallon on Thursday. However, this remains significantly higher than the $2.98 price recorded on 28 February, when the conflict began.
Experts suggest price reductions may stall as the US strategic petroleum reserve, currently at its lowest level since 1983, requires refilling. Tammy Kulesa of Blue Yonder noted that costs related to insurance, transport, and manufacturing will not normalise immediately. Mark Jones, a professor at Rice University, predicted that prices would not return to pre-war levels until the final quarter of 2027.
Current consumer inflation stands at 4.2 per cent, with supermarket prices for items like bakery goods and vegetables rising by 0.1 per cent in May. In response to competition from Walmart and Costco, Kroger announced it would reduce prices on thousands of items across its 3,000 locations.
Contradicting the president’s claims, employment figures are not currently at record levels. The economy added 172,000 jobs in May, which is lower than the 214,000 added in March and the 300,000 monthly averages seen under Joe Biden.
Furthermore, 92,000 jobs were lost in February 2026, and layoffs increased by 16 per cent between April and May, largely due to artificial intelligence.
Regarding energy supply, Vice President JD Vance stated that 12.5 million barrels of crude oil moved through the Strait of Hormuz overnight. However, Kpler data showed only six verified crossings occurred on 17 June.
Despite the discrepancy, Brent crude futures fell by one per cent to $76.51 during midday trading on Thursday as the temporary deal eased pressure on global supply.
