Escalating inflation fears from surging oil prices and new tariffs intensify expectations for a potential Fed rate hike.

Inflation concerns are mounting ahead of the Federal Reserve's July 28-29 policy meeting, driven by a surge in oil prices, with Brent crude hitting $100 a barrel, and new tariffs imposed by the Trump administration against 60 countries. The 30-year Treasury rate has reached its highest level in nearly two decades, around 5.18%, and markets are now pricing in a 30-40% probability of at least one Fed rate hike before year-end.