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Markets are pricing in practically no chance of a rate cut when officials meet later this month, according to the CME Fedwatch.
The US-Israel conflict with Iran has triggered the biggest oil supply disruption ever, topping the 1956 Suez crisis.
Broad-market index funds were nearly flat Monday, while gold and defense ETFs were up. All that changed a day later.
Oil prices are surging as Iran’s counterattacks on the US and Israel curbed shipments through the Strait of Hormuz.
Shares in travel firms are plummeting as Iranian counter-attacks on the US and Israel target vacation spots such as Dubai and Abu Dhabi.