Rising Oil Prices Lift Inflation Expectations as Markets Reprice Fed Hike Odds

Oil prices rose as the U.S.-Iran conflict pushed up energy markets, while the dollar weakened but remained near an overnight one-week high. According to ChainCatcher, Deutsche Bank analysts said higher prices for oil, natural gas, and other commodities have increased near-term inflation expectations. Against that backdrop, investors have repriced expectations for a Federal Reserve rate hike, and the market is again speculating that the Fed could raise rates next week.