Iran Conflict Tests Fed's Patience with Higher Energy Prices

The ongoing conflict in Iran is putting pressure on oil prices and challenging the Federal Reserve's ability to look past higher energy costs.

Oil prices have remained above pre-war levels, surpassing $90 a barrel after renewed fighting this week. The prolonged conflict has dragged into its seventh month with no clear path to resolution.

The Fed typically looks through energy shocks, assuming prices will eventually normalize and raising rates would slow an economy already hit by higher oil costs. However, it's getting harder for the central bank to ignore the persistent impact of the war on inflation.