The U.S. inflation rate increased sharply in March, according to the latest report by the Bureau for Labor Statistics.

The energy shock from the Iran war pushed consumer prices to their highest level in nearly two years, with the Consumer Price Index rising 3.3 percent from a year earlier, up from 2.4 percent in February, in line with economists’ projections. 

Energy prices surged 10.9 percent from the previous month, led by a 21.2 percent jump in gasoline, the biggest monthly increase since federal tracking began in 1967. Brent crude climbed from $73 a barrel before the conflict to $95.88 on Friday morning, while average U.S. gas prices hit $4.15 a gallon, according to AAA. Core inflation, excluding food and energy, rose a milder 2.6 percent annually, but still well above the target inflation rate of 2 percent.