Oil Prices Soar on Middle East Violence as US Market Awaits Fed Decision

The global stock market is holding steady ahead of the Federal Reserve's decision on interest rates. However, oil prices are surging due to escalating violence in the Middle East.

Brent crude leaped 5.6% to $86.64 per barrel after fighting resumed between Iran and the US-backed forces in Iraq. The price had swung as low as $72 earlier this month and as high as $102 last week, creating uncertainty about global oil flow.

The jump in oil prices has raised concerns that inflation could reaccelerate, which would make traders uncertain about the Fed's decision on interest rates. Traders are betting on a roughly 36% probability of a rate hike, which would be the first increase in three years.