US holds interest rates as Iran war triggers oil shock

The US central bank has voted to hold interest rates steady again, as a spike in oil prices since the US-Israel war with Iran began raises economic uncertainty and threatens to drive up inflation.

The decision, which was widely expected, left the Federal Reserve's key interest rate in the range of 3.5%-3.75%, where it has stood since December.

Despite pressure from US President Donald Trump to slash borrowing costs, policymakers have been moving cautiously, as they face a tricky combination of rising prices and mixed signals from the job market.

Analysts say the war has made them even less likely to cut, pushing back expectations for a rate cut until the end of this year.