UK job cuts rise in March amid Iran conflict, impacting oil and Fed rate markets

UK businesses accelerated job cuts in March, and two Polymarket contracts are reacting: crude oil hitting $90 by June 30 and the Fed’s 2026 rate path. The no-rate-cuts market currently sits at 34.8%.

Market reaction

The Iran conflict’s effect on the UK labor market points to broader instability that could push crude oil prices higher. The Crude Oil Price by End of June contract would benefit from supply disruptions, particularly through the Strait of Hormuz. Prince Abdulaziz bin Salman and Alexander Novak could shape outcomes through OPEC+ production decisions. That said, the crude oil market has seen no recent trades, suggesting traders are waiting for clearer signals from OPEC+ or direct geopolitical escalation.

The Fed rate market is more active. Odds for no rate cuts in 2026 are at 34.8%, down from 41% a week ago. That market trades $7,683/day in USDC, with $6,320 depth to move the price 5 points. The largest recent move was a 1-point drop. The Iran conflict could create inflationary pressure that makes rate cuts less likely, and upcoming statements from Jerome Powell and other Fed officials will directly affect these odds.

Why it matters

UK job losses tied to geopolitical disruption feed into two separate but connected questions: where oil prices go and whether the Fed holds rates steady. If the Iran conflict worsens supply chains, oil prices rise, inflation stays sticky, and the Fed has less room to cut. These contracts price that chain of events.

What to watch

OPEC+ meetings and EIA inventory reports are the next catalysts. Any production cut announcements or unexpected changes in US crude inventories could move both markets. On the crude oil side, the absence of trading volume means waiting for concrete developments (OPEC+ decisions, visible Strait of Hormuz disruptions) before sizing into positions.

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