Borrowing Costs Jump as Oil Prices Spike and Markets Expect Fewer Interest Rate Cuts

Short-term U.S. government borrowing costs hit their highest level in 16 months on July 13 as oil prices surged amid U.S.-Iran tensions. Financial markets now expect the Federal Reserve to cut interest rates less aggressively than they thought weeks ago—a shift that could raise costs for mortgages and car loans. The open question: will this stick, or reverse if the conflict settles?