Geopolitical instability linked to the latest Iran crisis is lifting oil and broader commodity prices, while markets are reassessing the prospect of another Federal Reserve rate increase. IBK Investment & Securities said concerns that clashes could widen to involve the U.S. and China are adding to upward price pressure ahead of next week's Federal Open Market Committee meeting, the Fed's policy-setting gathering. Brent crude has gained about 30% since the start of the second half and moved above $100 a barrel, while October West Texas Intermediate settled at $102.48 on Sept. 10, up 6.69% from the previous session. The firm said Middle East tensions may prove difficult to ease in the short term, with the conflict potentially continuing through the U.S. midterm elections. Inflation concerns are also spreading through copper, which is benefiting from investment in artificial intelligence data centers and power grids, and agricultural commodities such as coffee, cocoa and sugar, where extreme heat and crop risks have driven sharp gains. A global commodity price index has risen above its peak during the Iran crisis last spring to the year's highest level. The U.S. 10-year Treasury yield reached 4.97% intraday, close to the October 2023 peak of 4.99%; a move above 5% could weigh further on equities psychologically. CME FedWatch, a market-based tool for tracking interest-rate expectations, places the probability of a September hike at about 60%. IBK said strong August employment data and the oil-price surge mean an unexpected increase cannot be ruled out. Even if the Fed holds rates at this meeting, concerns about tighter policy could continue if officials leave open the possibility of another hike in the fourth quarter.