Wall Street Sinks as Fed Holds Rates; Oil Surges on Middle East Tensions

Wall Street experienced a volatile session, with major indices closing significantly lower after the U.S. Federal Reserve opted to maintain current interest rates. The decision, marked by a divided vote among policymakers, sent ripples through global markets, contributing to a risk-off sentiment.

Simultaneously, geopolitical tensions flared in the Middle East, driving global oil prices sharply upward. Brent crude futures climbed approximately 8%, surpassing $US90 a barrel, as markets reacted to renewed hostilities in the region. This surge in oil prices adds another layer of uncertainty to the global economic outlook.

In Australia, the benchmark ASX 200 is poised for a weak opening, with futures markets pricing in a 0.7% decline. This follows a three-day rally, suggesting the positive momentum may be short-lived. Investors will be closely watching upcoming economic data, including building approvals and the terms of trade, as well as a speech by RBA Assistant Governor Sarah Hunter for further market direction.