Oil Price Surge Threatens Inflation Shock and Fed Rate Cut Plans

Oil prices have been surging towards $100 per barrel after Iran's warning to declare a maritime exclusion zone around the Strait of Hormuz. The move follows US strikes on three Iranian oil tankers over the weekend.

Brent crude has climbed above $99 a barrel, reaching a seven-week high, while WTI has risen above $92. This sharp increase in oil prices could lead to an inflation shock that might complicate the Federal Reserve's rate-cut plans.

The US central bank may respond with aggressive rate cuts if the growth is severely impacted by the higher oil prices. If this happens, it could create a bullish setup for Bitcoin as investors seek safer assets.