Sticky July PCE Data Boosts Fed Rate Hike Expectations Amid Geopolitical Tensions

The July U.S. PCE price index revealed persistent inflation, leading markets to increase the probability of a Federal Reserve interest rate hike in September. Geopolitically, Iran announced a formal agreement with Oman regarding the distribution of transit fees for the Strait of Hormuz. Meanwhile, reports indicate that Russia plans to escalate its military operations in Ukraine. These macroeconomic indicators and regional conflicts are reshaping global risk appetite and impacting commodity pricing.