Iran conflict causes oil prices to spike above $100 per barrel, raising inflation concerns

Escalation of the Iran conflict sent crude oil prices soaring above $100 per barrel for the first time in months, raising inflation concerns among Federal Reserve officials. U.S. gasoline prices rose to $4.23 per gallon by late April. Geopolitical uncertainty and the energy price shock became key factors in the FOMC's April decision to maintain an easing bias while three regional Fed presidents dissented over signaling future cuts amid elevated inflation pressures. (Minneapolis Federal Reserve, May 1, 2026)