Oil Prices Soar as Iran Tensions Escalate Ahead of Fed Decision

The US stock market is in a mixed state ahead of the Federal Reserve's decision on interest rates. This comes as oil prices surge more than 4% after Jordan and the US intercepted Iranian missile barrages launched against American forces in the Middle East.

Brent crude, the international standard, jumped $3.71 to $85.79 a barrel, while benchmark U.S. crude gained $3.78 to $83.04 a barrel. This rebound follows a brief pause in fighting over the Strait of Hormuz, a critical waterway for global oil trade.

Markets are also awaiting the Federal Reserve's interest rate decision, with inflation remaining above its 2% target and unemployment at 4.2%. While no rate change is expected today, 76% of Wall Street traders foresee a hike in September.