by Coinstrooper Crypto Articles
Quick Take
  • Brent crude jumped 6.6% to $91.94 a barrel after President Donald Trump vowed to strike Iran.
  • The Federal Reserve sets interest rates hours later.
  • West Texas Intermediate, the US oil benchmark, rose 6.4% to $84.31.
  • Follow us on X to get the latest news as it happens

What Happened

West Texas Intermediate, the US oil benchmark, rose 6.4% to $84.31. Oil had fallen for three days straight. That drop is now gone.

Follow us on X to get the latest news as it happens

What Did Iran Attack, and How Did Trump Respond?

Market Context

Oil prices spiked on Wednesday. Brent crude jumped 6.6% to $91.94 a barrel after President Donald Trump vowed to strike Iran. The Federal Reserve sets interest rates hours later.

The Fed has already blamed energy for high prices. Its June 17 statement said so plainly.

“Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.”

Chair Kevin Warsh no longer hints at future moves. Markets have to guess.

Prices actually fell in June. The Bureau of Labor Statistics reported a 0.4% drop. That was the biggest monthly fall since April 2020.

Why It Matters

Iran’s Islamic Revolutionary Guard Corps fired multiple ballistic missiles at 5:45 p.m. ET on Tuesday. US Central Command called it an attempted surprise attack.

All of them were intercepted. No US troops were hurt and nothing was damaged.

Details

The IRGC said it aimed at a US airbase and a Central Command site in Jordan. Jordan’s state news agency reported five interceptions over the kingdom early Wednesday.

Trump answered in a phone interview with Fox News.

“We’ll be hitting them hard. They’re going to get a beating.”

He also said talks with Iran are still running. So strikes and diplomacy now sit side by side. The missiles broke a pause that started on Friday. Trump had halted strikes to give talks room to work.

Why Does Oil Matter to the Fed Rate Decision?

Rates stayed at 3.50% to 3.75% that day. All 12 voting officials agreed.

The pattern this year is simple. Expensive oil pushes up bets on a rate hike. Cheaper oil pulls them down.

Talks with Iran collapsed in July. Brent topped $100 again. Bets on a hike tripled from 10.7% to nearly 36% in two weeks.

Then Washington paused its strikes. Brent fell more than 15%. By Tuesday, CME FedWatch showed hike odds of 31.5%.

Wednesday’s jump undoes part of that calm.

What Did the Last Inflation Report Show?

Cheap fuel did most of the work.

Yearly inflation slowed to 3.5% from 4.2%. Core inflation, which leaves out food and fuel, eased to 2.6%.

The yearly picture is still ugly. Energy costs are up 15.7%. Gasoline is up 26.7%.