War Fears Send Oil Prices Soaring as Global Markets React

The global markets are experiencing a mixed reaction to the ongoing tensions between Iran and Jordan, with oil prices jumping more than 4% due to renewed war fears. The calm that followed weeks of escalation over the Strait of Hormuz has been shattered, causing Brent crude to surge $3.71 to $85.79 a barrel, while benchmark U.S. crude gained $3.78 to $83.04 a barrel.

Wall Street is also experiencing mixed premarket trading, with futures for the S&P 500 gaining 0.2%, and those for the Dow Jones Industrial Average losing 0.3%. The Nasdaq futures rose 0.3%.

The markets are waiting for the Federal Reserve's decision on interest rates later today, which is expected to be a hold, given that inflation remains above its 2% target and unemployment is low at 4.2%. However, 76% of Wall Street traders foresee a rate hike in September, according to the CME FedWatch tool.