Any chance the Fed cuts rates this year is ‘evaporating before our very eyes’ as Iran tensions raise oil prices

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Rising oil prices driven by escalating tensions with Iran are undermining the Federal Reserve's rationale for additional interest rate cuts this year. Higher energy costs could pressure inflation, reducing the central bank's incentive to lower borrowing costs. This development may weaken the U.S. dollar in forex markets as investors reassess risk appetite. The shift in Fed policy expectations could also impact global equities and commodity markets, particularly in oil-dependent economies.