The US Federal Reserve holds interest rates steady amid the fallout from the war with Iran

Mixed economic indicators

The Federal Reserve explained in its statement that economic activity in the United States continues to register strong growth, while the labor market has remained relatively stable with low job opportunities, with no significant changes in the unemployment rate in recent months, noting that inflation rates remain high.

Uncertainty is putting pressure on the markets.

The Central Bank confirmed that uncertainty regarding economic prospects remains high, given the repercussions of the war, which has been reflected in global markets that have witnessed sharp fluctuations recently, amid investors’ anticipation of any signs of stabilization.

High oil prices and the effects of war

Oil prices rose by about 3%, with Brent crude reaching about $105.9 per barrel and West Texas Intermediate reaching about $96.26, driven by escalating tensions, especially after Tehran announced restrictions on navigation in the Strait of Hormuz, which increased concerns about global energy supplies.