CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – After initial market volatility sparked by recent tensions between Israel and Iran, financial markets showed signs of stability early this week. “You wake up just a couple days later and like, OK, everyone’s like… the stock market is actually trading higher this morning and the oil market is down a little bit,” said CBS business analyst Jill Schlesinger. Despite Friday’s initial surge in oil prices by nearly 8%, Schlesinger noted that crude oil remains down 1% compared to last year. 

The situation in the Middle East remains a key focus for investors, particularly regarding the Strait of Hormuz, a crucial channel for global oil shipments. “About 1/4 of all the seaborne global oil supplies pass through the Strait of Hormuz,” Schlesinger explained, adding that any disruption there could significantly impact oil prices and global supply chains. 

Attention also turns to the Federal Reserve’s upcoming two-day meeting. Schlesinger predicts the Fed will likely maintain current interest rates, noting that the Middle East conflict could influence their decision to pause any rate changes. “The Fed wants to make sure that tariffs or the conflict in the Middle East… doesn’t seek through the overall U.S. economy, cause prices to go up,” she said. While inflation may tick upward in some areas, Schlesinger reassured listeners that it’s unlikely to mirror the sharp spikes seen in 2022. 

Listen to the full conversation here: