From Yahoo Finance: 2025-06-17 13:14:00

A potential Israel-Iran conflict could lead to a faster Federal Reserve interest rate cut, impacting energy markets. Historically, oil price spikes cause temporary inflation increases, but a sustained surge could harm growth and jobs. Oil prices rose above $75 after Trump’s comments, contrasting with earlier optimism about easing tensions.

Oxford Economics chief economist Ryan Sweet suggests the Fed may cut rates sooner than expected due to potential economic impact. Markets may take weeks to assess oil price direction. A Wall Street Journal report on eased Iran-Israel tensions previously boosted US equities and stabilized oil prices after recent surges.

Read more: Dow, S&P 500, Nasdaq fall as Trump calls for ‘unconditional surrender’ of Iran