Fed's Cook Warns Iran War Fuels Inflation, Clouds Rate-Cut Outlook

• Federal Reserve Governor Lisa Cook warns Iran war shifts risk balance towards higher inflation, complicating Fed's policy.
• Geopolitical tensions in West Asia are feeding into global price pressures, especially through energy markets.
• Conflict disrupted global oil flows via Strait of Hormuz, surging crude prices above $100 per barrel.
• Inflation was already sticky due to tariffs; the war has moved the Fed further from its 2% target.
• Rate-cut hopes recede as rising oil prices and uncertainty push bond yields higher, tightening financial conditions.