Trump Threats Fuel 7% Oil Price Surge Ahead of Fed Decision

Oil prices surged on Wednesday after President Donald Trump hinted at further action against Iran following an attack on a US base in Jordan. The price of Brent crude jumped to $90.03, up 7.06%, while WTI climbed to $84.77, an increase of 6.95%. This sudden spike comes just hours before the Federal Reserve's interest-rate decision.

The renewed hostilities between the US and Iran have pushed oil prices above pre-war levels, sparking concerns about inflation ahead of the Fed's rate announcement. The Houthis' threats to impose fees on commercial shipping through the Bab el-Mandeb Strait are also contributing to the price surge.

Momentum for a potential interest-rate hike has been building, but Wednesday's oil price increase may have intensified pressure on policymakers. Chairman Kevin Warsh will provide clues about the Fed's decision later today.