An overnight increase in oil prices has significantly reduced the odds of the Federal Reserve (Fed) rate cut demanded by President Donald Trump and increased the chances of his nominee to lead the U.S. central bank may need to cut borrowing costs early in his tenure. The increase in crude prices came after a hawkish Federal Reserve policy meeting and the escalation of the US-Israeli war with Iran. While new projections suggest a single quarter-terrestrial rate cut this year, Fed Chair Jerome Powell cautioned that any projection should be taken with a "grain-eschend" given the uncertainty surrounding the war's duration, inflation, and global fallout. Investors are placing roughly equal odds of a Fed rate hike versus a rate cut by the end of the year.