Oil Prices, Fed Rate Decision, West Asia Crisis Set to Drive Markets

Market participants are bracing themselves for a tumultuous week, as analysts predict that developments around the West Asia conflict, crude oil prices, and the US Federal Reserve's interest rate decision will drive market movements.

Ajit Mishra of Religare Broking Ltd noted that 'developments surrounding the US-Iran conflict, shipping activity through the Strait of Hormuz, and movements in crude oil prices will remain key drivers of global risk sentiment.'

The US Federal Reserve's policy meeting is set to be a defining macro event this week, with markets expecting policymakers to leave interest rates unchanged.

However, some investors are questioning whether inflation risks could remain elevated for longer due to the recent surge in energy prices.