Inflation Back in Fed's Focus After U.S. Strikes on Iran Push Crude Oil Higher

• US launched over 80 strikes in response to Iran's attack on three commercial vessels.
• Crude oil prices surged, with Light Sweet Crude Oil Futures (/CL) up over 5%, fueling inflationary concerns.
• Equity futures (S&P 500, Nasdaq-100, Dow Jones, Russell 2000) are falling, indicating a bearish market opening.
• CME FedWatch probabilities show increased likelihood of Fed rate hikes in September, October, and December.
• Weekly mortgage applications declined by 2.2%, with the 30-year mortgage rate ticking slightly higher to 6.58%.

The discussion focuses on the market's reaction to US retaliatory strikes against Iran, which has led to a significant rise in crude oil prices. This geopolitical tension and commodity price surge are increasing concerns about inflation and the likelihood of Fed rate hikes, contributing to an 'unsteady' and lower opening for stock futures. Additionally, weekly mortgage applications have declined as 30-year rates ticked higher.