Conflicts with Iran may lead to the Federal Reserve delaying interest rate cuts.

Some economists say that Israel's attack on Iran could delay the Federal Reserve's interest rate cut timeline. Last Friday, Israel launched unprecedented attacks on Iran's nuclear and military facilities, causing oil prices to soar globally. Investors and analysts are concerned that the escalating conflict could worsen inflation worldwide, including in the United States. Chief economist Joseph Brusuelas of RSM US LLP said that with President Trump's previous imposition of tariffs on trading partners leading to inflation, rising oil prices could exacerbate inflation pressures, making it unlikely for the Federal Reserve to take significant action in the short term. Senior global economist Robert Sockin of Citigroup stated, "If oil prices continue to rise, it will only add to the challenges already facing the Federal Reserve." He added, "Federal Reserve officials have emphasized that they are not in a rush to cut interest rates as they do not know how tariffs will impact the economy, but if there is a greater risk of inflation, you may only see a rate cut at the end of the year."