Oil Prices Soar on US-Iran Tensions as Fed Decision Looms
Oil prices surged more than 7% on Wednesday as renewed tensions between the US and Iran pushed WTI above $84 and Brent toward $90, just hours before the Federal Reserve's interest-rate decision. The rally accelerated after President Donald Trump told Fox News that the United States would 'hit Iran hard' following an attack on a U.S. base in Jordan.
The Houthis also weighed imposing fees on commercial shipping through the Bab el-Mandeb Strait, while US-Saudi forces launched fresh strikes against Houthi positions in Yemen. Brent crude was up 7.06% at $90.03, and WTI trading up 6.95%, at $84.77.
The renewed geopolitical premium comes just hours before the Federal Reserve announces its latest interest-rate decision, with markets divided over whether policymakers will leave rates unchanged or deliver the first rate increase since 2023. Investors are also looking for clues from Chairman Kevin Warsh after the Fed abandoned forward guidance that had shaped market expectations for more than two decades.