Economy

The Federal Reserve has raised interest rates for the first time since 2023, increasing its benchmark rate by 25 basis points to a range of 3.75% to 4.00%.

The Federal Reserve is now widely expected to raise interest rates tomorrow after hotter-than-expected inflation and surging oil prices forced markets to rapidly change their forecasts.

Lebanon is facing another wave of economic pressure as oil prices above $100, higher fuel costs, renewed conflict and rising inflation squeeze households already weakened by years of financial crisis.

Saudi Arabia’s East-West pipeline shutdown is now threatening roughly 4% of global oil supply. The line carries around 4 million barrels per day to the Red Sea and has become critical as tanker traffic through Hormuz remains heavily disrupted.

Brent crude is approaching $100 a barrel as renewed fighting across the Middle East threatens already strained oil supplies. Houthi attacks on Saudi cities, U.S. strikes on Iranian tankers and renewed Iranian attacks have pushed a growing geopolitical risk premium into energy markets.

Lebanon’s crisis has done more than increase poverty, it has hollowed out the middle class. Since 2019, frozen bank deposits, currency collapse, years of extreme inflation, dollarized expenses and deteriorating public services have destroyed the purchasing power and savings of ordinary families.