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Oil surge to $100 drives rate hike odds to multi-year highs

Oil surge to $100 drives rate hike odds to multi-year highs

Key Questions

What triggered the surge in oil prices above $100 per barrel?

Crude oil broke above $100/bbl amid Middle East conflict, which triggered a massive repricing of Fed rate hike expectations.

How have Fed rate hike odds changed recently?

July odds surged to 38% on CME, September to 82%, challenging the economist consensus of no hikes.

Why is the $91 oil price threshold considered significant?

The $91 threshold is seen as a 'big trouble' signal for inflation.

Crude oil broke above $100/bbl amid Middle East conflict, triggering a massive repricing of Fed rate hike expectations. July odds surged to 38% (CME), September to 82%, challenging the economist consensus of no hikes. The $91 threshold is seen as a 'big trouble' signal for inflation.

Sources (2)
Updated Jul 24, 2026