The Federal Reserve keeps interest rates unchanged in March, with analysts stating that the escalation of the Middle East conflict will continue to support oil prices.

Gate News reports that on March 19, the Federal Reserve decided to keep interest rates unchanged at its March meeting and expects inflation to rise. Policymakers are assessing the impact of the U.S.-Iran conflict. Meanwhile, Iran launched retaliatory attacks on energy facilities across the Middle East, significantly escalating the war and causing oil prices to continue rising. Phillip Nova analyst Priyanka Sahdevwa stated that the escalation in the Middle East, precise strikes on oil infrastructure, and the death of Iranian leaders all indicate ongoing disruptions to oil supply. The Federal Reserve maintained interest rates but used hawkish language, highlighting economic concerns arising from the conflict. Moomoo ANZ market strategist Tina Teng said that due to Iran’s renewed attacks on Middle Eastern energy infrastructure increasing regional tensions, and with no signs of easing the conflict, the Strait of Hormuz (a critical global oil transit route) is unlikely to reopen in the short term, supporting sustained oil price gains.

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