Oil Jumps 7% As Trump Threatens Iran Hours Before Fed Decision

Oil Jumps 7% As Trump Threatens Iran Hours Before Fed Decision Charles Kennedy Wed, July 29, 2026 at 3:34 PM GMT+2 2 min read CL=F Oil prices surged more than 7% on Wednesday as renewed U. S. -Iran hostilities and fresh threats to shipping through the Bab el-Mandeb pushed WTI above $84 and Brent toward $90, confronting the Federal Reserve with another inflation shock just hours before one of its most uncertain interest-rate decisions in years.

The rally accelerated after President Donald Trump vaguely told Fox News that the United States would " hit Iran hard " following an attack on a U. S. base in Jordan, while Iran-backed Houthis weighed imposing fees on commercial shipping through the Bab el-Mandeb Strait and U.

S. -Saudi forces launched fresh strikes against Houthi positions in Yemen.   Brent crude was up 7.

06% at 9:29a. m. ET Wednesday, reaching $90.

03, while WTI was trading up 6. 95%, at $84. 77.

The renewed geopolitical premium comes just hours before the Federal Reserve announces its latest interest-rate decision, with markets divided over whether policymakers will leave rates unchanged or deliver the first rate increase since 2023. Investors are also looking for clues from Chairman Kevin Warsh after the Fed abandoned the forward guidance that had shaped market expectations for more than two decades. June's inflation report eased pressure on the Federal Reserve after lower oil prices helped cool headline inflation during the brief lull in the Iran war, but that relief appears to have been short-lived.

With crude prices once again flirting with $90 as fighting resumes, investors are divided over whether policymakers will leave interest rates unchanged or respond to renewed inflation risks. The Houthis are also tightening pressure on Red Sea oil flows. After claiming they struck a Saudi tanker, the group warned it is considering new measures against commercial shipping transiting the Bab el-Mandeb, including imposing transit fees on vessels using the strategic waterway.

The latest threat comes as Saudi Arabia has already begun rerouting crude exports through Egypt's SUMED pipeline to bypass the chokepoint.   By Charles Kennedy for Oilprice. com   More Top Reads From Oilprice.

com Oil Prices Surge on Fresh Middle East Strikes and API Crude Draw Saudi Crude Tanker Goes Dark to Slip Through Bab el-Mandeb Houthis Claim Attack on Saudi Oil Tanker in Red Sea Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else.

You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.