Middle East Fighting Sends Oil Prices Soaring Amid Inflation Concerns

Oil prices surged on Wednesday after renewed fighting in the Middle East raised concerns about global oil supply. The price of Brent crude jumped 5.6% to $86.64 per barrel, rebounding from earlier lows near $72.

The spike in oil prices has investors worried that inflation could accelerate, just as it was starting to slow down more than expected. This uncertainty is making traders cautious ahead of the Federal Reserve's interest rate decision later in the day.

Traders are betting on a roughly 36% probability that the Fed will raise its main interest rate for the first time in three years. Higher rates can keep inflation in check, but they also slow down economic growth and undercut stock prices.