Due to the escalation of the US-Iran situation, international oil prices have surged rapidly. Brent crude jumped from around $80 per barrel to above $94 per barrel, and WTI crude also broke past $92 per barrel. The sharp rise in oil prices has posed a tough challenge for the US economy and the Federal Reserve. The increase directly pushes up inflation, weakening the Fed's justification for rate cuts. The market's expectation for rate cuts this year might be forced to delay, slow down, or even shift to rate hikes. At the same time, high oil prices suppress consumption and increase business costs. If the economy slows down while prices remain high, the US could face the risk of stagflation. The much-anticipated rate cuts and liquidity easing are now completely stuck because of oil prices. Middle East, please calm down already!