US hikes interest rates as fears grow of global oil shock over Iran War | BBC News

The US central bank has raised interest rates for the first time in three years as in inflation rises, driven by higher fuel and energy costs caused by the Iran War.

President Trump hit out at the decision by the US Federal Reserve, calling on it to “lower rates, and fast!”.

The Fed is seeking to curb rising prices, as the Iran War pushes up global oil and gas prices, hitting American business and consumers. Higher interest rates make borrowing more expensive for people wanting to secure loans, mortgages and credit cards, but can lead to better returns on savings.

Global oil prices have surged since the start of the US-Israel war with Iran, driving up the price of car fuel as well as the cost of goods and services generally. Borrowing costs are rising around the world, with growing warnings of the economic impact on living standards.

Sophie Raworth presents BBC News at Ten reporting by Dharshini David, Sarah Smith and Chris Mason.

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