Oil Volatility in 2026 Pushes Borrowing Costs Higher Oil Volatility in 2026 Pushes Borrowing Costs Higher In January 2026, renewed clashes around the Strait of Hormuz sent crude prices surging past $120 a barrel. The sudden spike caught markets off guard and forced the US Federal Reserve to pause its planned rate cuts, keeping the federal funds rate at 4.25–4.50 percent. Economists now...