Thursday 17 September 2026 07:30 UTC
Fed Raises Rates as Conflict Strains Oil and Air Defences
In the 24 hours ending 17 September at 07:30 UTC, interest rates rose as conflict continued to strain oil supplies and air defences.
The Federal Reserve raised its main rate by 0.25 percentage points to 3.75%–4%. This was its first increase in more than three years. Most policymakers expected at least one more increase this year.
Kevin Warsh, Federal Reserve chair, said inflation remained too high. He also cited stronger economic growth and employment. Donald Trump, the US president, called the increase unfortunate but supported Warsh’s independence.
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US stocks fell after the decision. The Dow lost 1.17%, while the S&P 500 fell 0.43%. The Nasdaq ended almost unchanged.
Saudi Arabia aimed to restore half of its East-West oil pipeline capacity within days. Drone attacks from Iraq had stopped the pipeline during the previous week.
Saudi Arabia was also running low on missile interceptors amid continued Houthi attacks. It asked Britain, France, Pakistan and Egypt for air-defence help. Saudi forces intercepted a Houthi drone south of Mecca on 15 September.
Houthi representatives met US officials in Oman after their gains along Yemen’s Red Sea coast. They promised not to attack American, Israeli or other commercial ships. Saudi-owned vessels remained targets.
Saudi airstrikes continued across Houthi-controlled areas in Taiz, Marib and Hajjah. The Houthis claimed about 40 strikes during one day.
The United States began examining possible Iranian involvement in cyberattacks against two energy tankers. The attacks happened near Gibraltar as both ships travelled toward Texas. One tanker carried more than two million barrels of oil.
The US House passed new Russia and Iran sanctions by 262 votes to 159. The bill allows tariffs up to 100% on some buyers of Russian energy. It now needs Trump’s signature.
The European Union said Canada was negotiating to become its first associate member. Trump threatened serious tariffs or trade restrictions if he considered the agreement hostile.
A Ukrainian drone attack hit Russia’s Yaroslavl oil refinery and caused a fire. Another Ukrainian strike killed Major General Anton Grunis, commander of a Russian motor rifle brigade.
US prosecutors charged five alleged members of a Russian intelligence-linked network. They allegedly recruited people for surveillance and planned killings of Russian dissidents in America and Lithuania.
At least 20 people died after a war-damaged building collapsed in Gaza. Dozens remained missing.
Mohammad Sharifullah, an ISIS-K supporter, received 20 years in prison. He helped examine the route used before the 2021 Kabul airport bombing. That attack killed 13 US service members and about 160 Afghans.