Oil Prices Jump 4% Amid Renewed Middle East Violence

Markets around the world are mixed ahead of the Federal Reserve's interest rate decision later today, but oil prices have jumped over 4% after a recent flare-up in Middle East violence. The US and Jordan knocked down several Iranian missiles launched against American forces in the region, ending a brief pause in fighting.

Oil prices had eased from last week's two-month high, but rebounded as tensions flared up again. Brent crude, the international standard, jumped $3.71 to $85.79 a barrel, while US crude gained $3.78 to $83.04 a barrel.

The Fed is not expected to raise or cut interest rates today, but 76% of Wall Street traders foresee a rate hike in September. Higher rates typically hurt stock prices, but with inflation still above the 2% target and unemployment at 4.2%, Fed officials are growing impatient with inflation.