Fed rate-cut doubts rise as Middle East conflict drives up energy prices

March 3 (Reuters) – Traders are paring back their expectations on interest-rate cuts this year by the U.S. Federal Reserve, as they fear that the inflationary effects of a surge in energy prices will complicate the central bank’s monetary policy path. 

Crude oil prices climbed for a third straight session, as the U.S.-Israeli conflict with Iran widens, disrupting fuel shipments and heightening fears of further supply disruption to oil and gas from the Middle East.

Here’s how the markets are currently looking at the U.S. central bank’s outlook:

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur)