The Fed's rate hike expectations cool down as Trump hints at progress in the war.

In American President Trump hinted at progress in negotiations with Iran, oil prices fell about 10%, causing investors to reduce their bets on interest rate hikes in the United States. Over the past few weeks, a sharp rise in oil prices has raised concerns about inflation, leading the market to prepare for at least one interest rate hike by the Federal Reserve. The prospect of easing tensions has reignited expectations that interest rates will remain unchanged for a longer period of time. "The only important issue for the financial markets right now is oil prices," said Eric Winograd of AllianceBernstein. He expects the Fed to cut interest rates this year. At the Chicago Mercantile Exchange, the probability of an interest rate hike before December fell from 25% on Friday to 19%.