Axios

Oil prices are back to the high levels of March as investors price in the growing risk that the Iran war will escalate.

Why it matters: Higher energy prices ripple through the entire economy, pushing up inflation.

• The recent rise in oil has also put stocks under pressure: Both the S&P 500 and Nasdaq declined last week as prices climbed.

Here's a surprising combination of words: Municipal bonds are sexy right now — offering historically attractive returns at a time when states and localities need more and more cash.

Why it matters: That may be good news for investors, but it costs taxpayers who foot the bill when states and localities borrow money by issuing these bonds.

Traders are betting that oil prices will remain elevated for longer than they anticipated just weeks ago, threatening to prolong the inflationary pressures that businesses and consumers have weathered for months.

Why it matters: Oil inventories have helped cushion the blow from disrupted Middle Eastern supplies, but much of that buffer has been depleted since the war began.

• The possibility of sustained price pressures into next year throws into doubt the logic that central banks traditionally rely upon to look through energy price shifts — that they represent a one-time shift in relative prices, not an ongoing inflationary process.

The push to pass a sweeping permitting bill is gaining powerful allies and encountering fresh resistance as Congress prepares for a post-midterms showdown.

Why it matters: It's the most important energy bill in a long time.

White House envoy Steve Witkoff will meet Russian President Vladimir Putin in St. Petersburg on Wednesday and present him with an updated proposal to end the war in Ukraine, a U.S. official said.

• President Trump's son-in-law and adviser Jared Kushner will join the meeting virtually.

Why it matters: The White House hopes Putin will show more willingness to compromise after Trump agreed to lift sanctions on Russian diesel sales and took other steps welcomed by Moscow.

The Iran war and the Ukraine-Russia conflict are creating a "multidirectional squeeze on world agriculture" that could spiral into a crisis, a new report finds.

Why it matters: Wars and extreme weather are colliding to threaten global food supplies and drive up prices, especially in vulnerable economies.

Project Omega and Charter Space want to explore how radioactive isotopes can be used to keep expensive satellites in orbit longer and prevent them from being lost to the depths of space.

Why it matters: Satellites often rely on solar power, which can be unpredictable. Reliable power could increase the odds of spacecraft survival.

• NASA has previously observed that about 41% of small satellites fail or partially fail.

Voters in oil-rich Alberta overwhelmingly rejected a push to bring the province one step closer to secession in a historic referendum.

Why it matters: The result is a win for Canadian Prime Minister Mark Carney, who has touted a united, energy-dominant Canada and sought to appeal to Albertans, who have expressed resentment over the nation's energy policies.

Silicon Valley moves fast and breaks things, but the U.S. electrical grid moves slowly and requires permits.

• The explosive growth of AI is colliding with the glacial pace of building out new power infrastructure, prompting a new warning from Goldman Sachs that energy bottlenecks are set to stall the AI race.

Why it matters: Amid a wave of anxiety from Wall Street about the debt-fueled AI buildout, Goldman points to power as the biggest risk to trillions in spending in a new report shared exclusively with Axios.

One issue is breaking through even among the most loyal Republican supporters: gas prices.

Why it matters: Republicans promised to slash gas prices. But the Iran war sent them soaring, up 37% since President Trump took office.