Barclays says oil prices have retreated sharply from peaks during the Iran conflict, but its inflation outlook has worsened. In a client note the bank said the odds of the Fed holding rates this year rather than hiking have narrowed noticeably in recent months, though that remains its base case. Barclays cited strong US economic momentum, saying the oil decline alone is unlikely to relieve US inflationary pressures or materially change Fed policy expectations.

2026-07-13

Barclays says oil prices have retreated sharply from peaks during the Iran conflict, but its inflation outlook has worsened. In a client note the bank said the odds of the Fed holding rates this year rather than hiking have narrowed noticeably in recent months, though that remains its base case. Barclays cited strong US economic momentum, saying the oil decline alone is unlikely to relieve US inflationary pressures or materially change Fed policy expectations.