- Surging oil prices in the wake of Israel’s large-scale air strikes on Iran could reignite inflation, which has shown signs of cooling despite President Donald Trump’s tariffs. Israel has signaled its attacks will be sustained, raising the risk oil prices will remain high and drag inflation up, too, preventing the Federal Reserve from lowering interest rates.
Israel’s large-scale attacks on Iran sent oil prices surging, and the prospect of a prolonged conflict that keeps crude higher could dash hopes for rate cuts from the Federal Reserve.
