Forex
EUR/USD Plummets Below 1.15 Amid Oil Shock Fears and Rate Hike
The EUR/USD dipped below the 1.1500 mark after the Federal Reserve's interest rate hike, and concerns about an oil shock have revived demand for the US dollar.
Inflation has been above the Fed's goal since March 2021, despite easing through 2025, and renewed pressure is linked to an energy shock tied to a widening Middle East conflict.
The Strait of Hormuz is a major geopolitical chokepoint, with over 20 million barrels of oil per day, representing about 20% of global petroleum consumption, transiting this route.