Oil prices spike over 7% as U.S.-Iran hostilities escalate, adding inflation pressure before the Federal Reserve’s rate decision.
Oil prices climbed more than 7% Wednesday, with WTI surpassing $84 and Brent approaching $90, driven by heightened U.S.-Iran tensions and threats to shipping lanes. The surge follows President Trump’s warning of a strong U.S. response to an attack on a base in Jordan, while Iran-backed groups consider new fees on commercial vessels.
The rally compounds inflation concerns ahead of the Federal Reserve’s interest-rate decision, one of its most uncertain in years. Prior sessions saw oil stabilize near $80, with analysts citing geopolitical risks as a key driver of volatility.
Markets brace for potential supply disruptions, with traders weighing the Fed’s reaction to rising energy costs amid already elevated inflation expectations.