Weekend military strikes in the Middle East and Friday’s statements by the Federal Reserve chair combined to drive down stock markets in the U.S., Europe and Asia, according to a report by the Associated Press.
After the U.S. hit Iranian rocket launchers in the Strait of Hormuz, crude oil prices rose over 3% and reignited fears of higher inflation.
The military action ended days of relative peace in the international trade corridor as the Trump administration focused on economic pressure against Iran.
On Friday, Federal Reserve Chair Kevin Warsh, a Trump appointee, said inflation is still too high and interest rates might have to be raised in the coming months.
Also on Friday, Trump announced an oil deal with Venezuela, claiming it would eventually put downward pressure on global crude oil prices.
