Strong US retail sales showcase economy's resilience despite Iran war

Strong US retail sales showcase economy's resilience despite Iran war as May spending rose more than expected, even while households faced higher gasoline costs tied to the US-led conflict in the Middle East. U.S. retail sales climbed 0.9% in May after a downwardly revised 0.4% gain in April, and were up 6.9% year over year, according to the Commerce Department’s Census Bureau. Analysts warned that the support from larger tax refunds could fade as prices stay elevated. The Federal Reserve kept its benchmark overnight rate at 3.50%-3.75% but updated projections showing policymakers expect to raise borrowing costs this year as inflation risks persist. Retail strength contrasted with weakening consumer sentiment, with gasoline prices briefly surging to four-year highs before slipping below $4 a gallon.