Economic Headwinds Mount as Oil Prices Surge, Interest Rates Loom

The US economy has been resilient over the past two years despite several challenges, but economists are now warning that new and lingering threats could test its strength.

A convergence of risks, including higher oil prices, rising interest rates, and a record-high federal debt, is emerging as a major concern for investors.

Oil prices have climbed in recent weeks, with Brent crude reaching $108.45 on Monday amid escalating tensions in the Middle East, which could push global oil prices above $120 per barrel if sustained, according to Goldman Sachs.

Rising interest rates are also a risk as the Federal Reserve considers its next move, with many economists expecting a rate hike for the first time in over three years. A series of hikes would increase borrowing costs and temper inflation by slowing economic growth.