Oil Jumps 6% Amid Iran Tensions, Fed Rate Decision Looms

Oil prices surged on Wednesday, jumping 6% to $87.01 per barrel after fighting resumed between Iran and US forces in the Middle East.

The increased tensions raised concerns about the global flow of oil, causing Brent crude's price to swing wildly between $72 early this month and $102 last week.

This volatility has economists worried that inflation will reaccelerate, just when it had begun to slow more than expected.

In response, traders are betting on a roughly 36% probability that the Federal Reserve will raise its main interest rate for the first time in three years.