Warsh Hints at Rate Hikes as Oil Prices Surge Amid US-Iran Conflict

Central banker Kevin Warsh indicated in a speech at Jackson Hole that he's ready to increase borrowing costs, citing stubbornly high inflation rates. Inflation has remained above the Fed's two-percent target, currently sitting at 3.7 percent.

The US-Iran conflict has pushed oil prices higher after a run lower for most of last week. Crude contracts rose more than two percent on Monday following the US attack on Iranian rocket launchers in the Strait of Hormuz.

Warsh's comments sparked a mixed response from markets, with some analysts predicting rate hikes could be on the horizon. However, he stopped short of explicitly signaling a September move, leaving investors uncertain about the Fed's next steps.