Oil Prices Spike on Iran-Israel Tensions, Raising Inflation Fears and Risk of Fed Rate Hikes

Oil prices jumped as high as 5% amid fears that Iran helped Hamas plan its attack on Israel, which could lead to sanctions and tighter supply.

If Iran gets dragged into the Middle East conflict, analysts warn crude prices could soar and unravel the Fed's inflation fight.

Higher oil prices would likely raise costs for consumers, hindering the Fed's progress on bringing down inflation.

More rate hikes from the Fed to combat rising inflation could weigh on economic growth and corporate profits.

Broader regional conflict involving Iran would likely weaken the global economy, bring more inflation, and pose challenges for financial markets.