---
title: "Analysts warn of looming market correction as oil tops $100"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287004061.md"
description: "Analysts warn that rising oil prices, now above $100 due to Iran's closure of the Strait of Hormuz, are fueling inflation and squeezing corporate profits. This situation creates a disconnect with record-high equities and increasing borrowing costs, raising the risk of a market correction. The Fed may consider rate hikes to stabilize markets as inflation expectations rise."
datetime: "2026-05-20T04:19:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287004061.md)
  - [en](https://longbridge.com/en/news/287004061.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287004061.md)
---

# Analysts warn of looming market correction as oil tops $100

Oil's inflation shock: Iran’s closure of the Strait of Hormuz has pushed oil above $100, fueling inflation and squeezing corporate profits. Market disconnect: Experts warn that record-high equities clash with rising borrowing costs and energy prices, raising correction risks. Fed's policy dilemma: With inflation expectations climbing, the Fed may consider rate hikes to stabilize markets and anchor investor confidence.

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