What investors should watch this week: Oil, Fed, Tariffs, and Israel-Iran Tensions

Dubai: Global markets are heading into a jittery week as investors face a mix of rising geopolitical risks, volatile oil prices, and a critical U.S. Federal Reserve policy decision.

The biggest headline-maker is the escalating Israel-Iran conflict. It’s already pushed oil prices sharply higher, with Brent crude up 7% to $74.23 and U.S. crude jumping over 7% to $72.98 a barrel.

Any further escalation could threaten supplies through the vital Strait of Hormuz, where a large chunk of the world’s oil flows. That means higher fuel prices could be coming — not just for consumers, but also for businesses.

At the same time, all eyes are on the U.S. Federal Reserve’s June 17–18 meeting. The Fed is expected to keep interest rates steady for a fourth time in a row — but that doesn’t mean it’s business as usual.

President Trump has been pressing the Fed to cut rates sharply, blaming the current level for dampening growth. However, Fed officials remain cautious, holding off until inflation — especially from Trump’s sweeping tariffs — becomes more predictable. While inflation has stayed under control for now, the full effects of new tariffs may not show up in prices until later this summer.

The Fed will also share fresh economic projections this week, offering clues on how many rate cuts (if any) could be coming in the months ahead.

Why does this matter for investors? Because higher oil prices and policy uncertainty can affect company profits, consumer spending, and ultimately, stock market direction. Traders will be watching closely for any signs of change in tone from the Fed — or further headlines from the Middle East.