Brent Crude Tops $85 as US-Iran Standoff Intensifies, Boosting Rate-Hike Bets Ahead of US CPI

Oil prices, with Brent crude surpassing $85, have advanced for a second day as the intensifying standoff between the US and Iran reignited inflation concerns and increased expectations for an interest-rate hike. Money markets are now pricing in approximately a 50% chance of a July interest rate hike, following Federal Reserve Governor Christopher Waller's remarks suggesting that officials may need to raise borrowing costs to curb price pressures.