Nervous financial markets were waiting to see how Israel responds to a drone and missile attack by Iran this weekend with many traders fearing a big spike in the oil price if the cycle of violence continues.
The oil price was little changed today on relief that the vast majority of the projectiles were shot down before reaching their targets. But it is up sharply from $83 just a month ago to just under $90 today, and investors worry this will hinder efforts to get inflation under control and pave the way for interest rate cuts.
