Wall Street followed global markets higher Wednesday and the value of U.S. crude fell eased despite a brand new barrage of attacks by Iran on its Gulf neighbors.
Futures for the S&P 500 and the Dow Jones Industrial Average each rose 0.5 per cent ahead of the Federal Reserve’s decision on rates of interest later within the day. Nasdaq futures climbed 0.6 per cent.
U.S. benchmark crude fell US$1.24 to US$94.53 per barrel. Brent crude, the international standard, rose 75 cents to US$104.17 per barrel. That’s down from greater than US$106 on Monday.
With higher oil prices feeding into other inflation, the Fed is widely expected to maintain rates on hold Wednesday.
The Fed will even release a set of quarterly projections, which could lead to the central bank trimming its forecast of 1 rate cut this yr, to zero. Though seemingly a minor adjustment, it might be a serious course correction after 18 months of on-again, off-again rate cuts.
The Iran war has made it a very difficult time for policymakers to issue economic projections. Gas prices are soaring and can push up inflation for not less than the following month or two. The typical price for a gallon of gasoline spiked again overnight, reaching US$3.84. A gallon of gas last month, before the U.S. and Israel attacked Iran, was well under US$3.
Get day by day National news
Get day by day Canada news delivered to your inbox so you will never miss the day’s top stories.
Many economists expect the Fed will forecast that inflation will remain as high as three per cent even by late 2026, well above its December projection of two.6 per cent. A rise of that magnitude may very well be hard to square with more rate of interest cuts.
Iran lashed out Wednesday with multiple attacks on its Gulf neighbors and Israel following the killing of certainly one of its top leaders in an airstrike. Iran’s missiles evaded air defenses, killing two near Tel Aviv.
Global oil flows remain largely constrained, ING Bank analysts Warren Patterson and Ewa Manthey wrote in a research note on Wednesday, whilst hopes were growing that Iran could be allowing more vessels through the Strait of Hormuz, a key waterway for global oil and gas transport.
Roughly a fifth of the world’s crude oil passes through the strait, which has been largely closed as Iran blocks ships linked to the U.S., Israel and their allies.
In equities trading, Macy’s jumped about seven per cent after the department store reported stronger-than-expected profits within the crucial fourth-quarter as comparable sales rose again. The department store said an overhaul of its merchandise and improved customer support led to more spending by shoppers.
In Europe, Germany’s DAX rose 0.9 per cent, the CAC 40 in Paris picked up 1.1 per cent and Britain’s FTSE 100 edged 0.2 per cent higher.
During Asian trading, Tokyo’s Nikkei 225 gained 2.9 per cent to 55,239.40 after the federal government reported exports were higher than expected in February.
In South Korea, the Kospi jumped 5 per cent to five,925.03.
Lower oil prices are a boon for giant oil importers like Japan and South Korea.
Hong Kong’s Hang Seng reversed early losses, surging 0.6 per cent to 26,025.42, while the Shanghai Composite index also rebounded, gaining 0.3 per cent to 4,062.98.
Australia’s S&P/ASX 200 climbed 0.3 per cent to eight,640.60.
Taiwan’s Taiex added 1.5 per cent and India’s Sensex advanced one per cent.
© 2026 The Canadian Press