The Federal Reserve is expected to maintain a wait-and-see approach during its upcoming FOMC meeting, with no immediate policy changes anticipated. Market focus remains on geopolitical tensions in the Middle East, particularly Iran's potential retaliation against Israel's killing of its top security chief, which could disrupt global energy markets. Analysts suggest markets are pricing in one additional rate cut later in the year, though no action is expected tonight. Energy prices remain volatile amid fears of supply disruptions, adding uncertainty to the economic outlook. This inaction by the Fed could lead to prolonged market volatility, especially in energy-linked assets and the USD. Traders are closely monitoring how geopolitical risks intersect with monetary policy, as energy shocks often ripple through global markets. The USD's strength may weaken if energy prices surge, impacting commodity-dependent economies. Investors should watch for updates on Middle East tensions and the Fed's forward guidance. Energy market participants need to assess how regional conflicts might affect oil flows, while forex traders should track USD movements against emerging market currencies. Central bank policy shifts and inflation data will remain critical in the coming weeks.