Markets Brace for U.S. Rate Decision Amid Middle East Tensions

Global financial markets faced instability on Wednesday as investors awaited a crucial U.S. interest rate decision later in the day. The situation was compounded by escalating hostilities in the Middle East, adding to the challenges of an economy already dealing with the unpredictability of U.S. tariffs.

Traders are keenly observing the ongoing Israel-Iran air war and its implications on global oil supply. Brent crude prices exhibited volatility, influenced by the risk of disruptions in the Strait of Hormuz, a critical oil route. European stocks retreated, reflecting broader economic apprehensions.

Meanwhile, the U.S. dollar regained some stability, bolstered by its safe-haven appeal amidst President Trump's erratic tariff policies and debt concerns. Investors are also closely watching the Federal Reserve's monetary policy projections, with expectations of steady interest rates despite ongoing geopolitical and economic challenges.

(With inputs from agencies.)