AP Business SummaryBrief at 8:44 a.m. EDT

Falling gas prices cut inflation last month yet renewal of Iran war could limit progress

WASHINGTON (AP) — U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, providing some relief to consumers, though much of the progress could be reversed if the Iran war keeps worsening. Prices dropped 0.4% in June from May, the largest monthly drop in four years, the Labor Department said Tuesday. On a yearly basis, inflation declined to 3.5%, down from a year-over-year gain of 4.2% in May and lower than many economists expected. Yet oil prices jumped Monday as the United States renewed attacks on Iran. And many Americans have soured on the economy after five years of elevated inflation, posing a risk to Trump and Republicans in the upcoming midterm elections.

New York to impose the country’s first statewide moratorium on data centers

NEW YORK (AP) — New York will block new large data centers that fuel artificial intelligence for up to a year to protect the environment and energy grid. Gov. Kathy Hochul is set to announce the move Tuesday, marking the country’s first statewide moratorium on hyperscale data centers. These facilities require massive energy and water to cool thousands of servers. The order will pause state permitting and direct regulators to create standards addressing environmental impacts and energy demand. Tech companies argue this could hurt job growth and cede ground to China in AI development. The decision also carries political significance for Hochul’s reelection campaign and the state’s congressional races.

Earthquake aid keeps flowing from Florida to Venezuela, as volunteers unite to help recovery

Eighteen-year-old Alessandra Izaguirre is part of a massive grassroots effort to help Venezuela after devastating earthquakes. From Doral, Florida, she joins thousands at the nonprofit Global Empowerment Mission (GEM) to send aid to Caracas. Nearly three weeks after the disaster, hundreds of volunteers still pack aid packages daily. The U.S. State Department facilitates the supply chain, allowing GEM to operate independently. The effort highlights a shift in U.S.-Venezuela relations since President Trump’s actions against Nicolás Maduro. GEM aims to deliver 100,000 boxes monthly for the next three to six months as Venezuela’s recovery begins.

12 states challenge Paramount’s takeover of Warner, say merger would ‘extinguish competition’

NEW YORK (AP) — Twelve states are suing to block Paramount’s takeover of Warner Bros. Discovery. They argued in a lawsuit Monday that the $81 billion merger would “extinguish competition” in Hollywood and lead to fewer choices for consumers across the U.S. The office of California’s attorney general is leading the coalition. It alleges that the proposed merger would lead to higher prices, lower quality, and less content for movies and the television landscape. Paramount maintains that merging with Warner will be good for competition. The company says it will “vigorously defend” the transaction.

JPMorgan Chase profit hits $16.9 billion in the second quarter, boosted again by market volatility

WASHINGTON (AP) — JPMorgan Chase said Tuesday that it earned $16.9 billion in the second quarter as its equities trading division again took advantage of market volatility triggered by the war in Iran. The nation’s largest bank by asset size, JPMorgan said that revenue in every line of its business hit record levels in the quarter, including its markets division, where revenue grew 35% over the same period last year. Revenue in its equity markets division skyrocketed 86%. JPMorgan earned $6.14 per share in the period, beating analyst estimates of $5.59 per share and 2025’s $5.24. Managed revenue came in at $58 billion, also topping the estimates of analysts surveyed by FactSet.

Judge says Trump IRS lawsuit was filed for ‘improper purpose,’ refers lawyer for possible discipline

WASHINGTON (AP) — A federal judge says President Donald Trump’s lawsuit against the IRS over his leaked tax returns was filed for an “improper purpose” as she referred one of his attorneys for possible disciplinary action. The ruling from U.S. District Judge Kathleen Williams on Monday amounts to a stinging rebuke of the Republican president’s lawsuit, characterizing it as an exercise in self-dealing in which he sued an entity that is effectively under his control. The suit concluded in May with a settlement agreement that created a since-abandoned $1.776 billion fund meant to compensate allies of the president, as well as immunity from tax audits.

Subpoenas issued to NY Times reporters seen as ‘unprecedented’ threat to press freedom

Media advocates have reacted with alarm to subpoenas issued to five New York Times journalists who reported on security concerns about the new Air Force One. The move is seen as a dangerous and brazen escalation in the Trump administration’s campaign against media outlets that run content that angers him. The subpoenas demand the reporters testify before a federal grand jury this week. The National Press Club and the Committee to Protect Journalists are among the groups calling the subpoenas an assault on press freedom. The Times says it is confident it will prevail in court.

Oil prices jump as fighting flares in the Middle East, while Asian shares are mixed

BANGKOK (AP) — Oil prices are higher and world shares are mixed after markets in Tokyo and Seoul rebounded from early losses. The price of Brent crude climbed to over $86 a barrel after soaring nearly 10% on Monday. Oil prices are still below their wartime peak, but uncertainty over the future course of supplies deepened as the U.S. and Iran each asserted they controlled the Strait of Hormuz. On Wall Street, stocks were pulled lower Monday by declines for AI-related companies. The S&P 500 fell 0.8% and the Dow dropped 0.3%. The tech-heavy Nasdaq composite fell 1.6%. U.S. consumer inflation figures are due out later Tuesday.

You just retired (or are about to). Now what?

If there’s one group likely to be experiencing the most consternation over inflation and economic uncertainty, it’s those who have just retired or are about to. To make it through this period with their sanity intact, they should focus on what they can control. The right take-control tool kit involves strategies for spending, investing, Social Security, and taxes.

Massive AI buildout poses latest inflation threat as consumers pay more for laptops and electricity

WASHINGTON (AP) — American consumers — and the Federal Reserve — are being hit with another high-cost headache. The gusher of investment in data centers — likely topping $700 billion this year — to power artificial intelligence has made memory chips, computer processors, and other equipment, as well as electricity more expensive, and economists expect it will continue to push up inflation at least through the end of this year. While it won’t be as large a spike as occurred in 2021-2023, when inflation peaked at 9.1%, massive AI spending is likely to keep prices rising more quickly than the Federal Reserve would like.…Read more by AP