Traders are reducing expectations on interest-rate cuts by the U.S. Federal Reserve due to concerns about the inflationary effects of a surge in energy prices. Crude oil prices have risen for a third consecutive session due to the ongoing conflict between the United States and Iran, raising concerns about supply disruptions. Futures contracts indicate a 30.7% chance of a 25-basis-point interest rate cut in June, down from a 49.6% chance last week and a more than ​56% chance from a month ago. Traders expect around 42-bps worth of policy easing by December, implying one 25-bps cut this year. The U.K. central bank is expected to maintain its rates steady in March, continuing to stay on pause after cutting rates thrice in 2025.