<div id="readability-page-1">Rising inflation threat: Economists warn the Iran war is pushing up inflation expectations, increasing pressure on the Fed to act aggressively. Oil supply squeeze: A U.S.-led blockade and Hormuz closure have cut Iranian exports, depleting global reserves and raising energy prices. Market rate impacts: Mortgage and bond yields are climbing in the U.S. and Europe as borrowing costs rise amid inflation fears.</div>

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<p>Economists warn that the Iran war is increasing inflation expectations, pressuring the Fed to act. A U.S.-led blockade and Hormuz closure have reduced Iranian oil exports, raising global energy prices. Consequently, mortgage and bond yields are rising in the U.S. and Europe as borrowing costs increase amid inflation concerns.</p>

Iran war fuels inflation fears as July Fed hike looms