Oil prices climbed more than 7% on Wednesday after renewed tension between the United States and Iran rattled energy markets. The move came just hours before the Federal Reserve’s rate decision, adding another major variable for investors already tracking inflation and global growth.
The surge pushed West Texas Intermediate above $84 a barrel, while Brent crude moved toward $90. Traders reacted to the higher geopolitical risk after Donald Trump threatened Iran, a development that raised concerns about possible disruption to supply and transport routes tied to the wider Middle East.
Markets were also watching the Red Sea, where Houthi-linked pressure on shipping added to the jump in crude. Fresh attention on possible fees affecting vessels moving through the Bab el-Mandeb intensified worries about higher costs and new obstacles for one of the world’s key maritime corridors.
The sharp rise in oil created an uneasy backdrop for the Fed’s announcement. Higher energy prices can feed into inflation expectations, so the rally in crude was likely to remain a central focus for investors assessing both the geopolitical outlook and the path of U.S. monetary policy.
