Markets move to price in rate hikes as inflation fears and geopolitics reshape Fed expectations

Middle East tensions have driven divergences across asset markets as oil stays elevated and traditional safe havens falter. What to know : Markets have flipped from pricing in multiple Fed rate cuts to expecting rate hikes thanks to energy-led inflation fears. Oil remains elevated, gold has fallen sharply despite its safe-haven status, and U.S. equities have weakened. Bitcoin has outperformed, but only in the very short term.