Global energy executives gathered in the Malaysian capital on Monday for an industry conference with an eye on the dramatic escalation in the conflict between Israel and Iran, which has fuelled worries that it could widen and disrupt supply.

The Federal Reserve will release its June rate decision on Wednesday, with the market expecting the central bank to hold interest rates steady. Bank of America Securities senior US economist Stephen Juneau and Ritholtz Wealth Management chief market strategist Callie Cox join Morning Brief to discuss their expectations for the Fed meeting as geopolitical tensions in the Middle East rise.

Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

U.S. ultra-low sulfur diesel futures hit the highest level since February, outpacing gains in oil and gasoline as analysts warned that diesel supply is the most exposed to the conflict in the Middle East.

A further escalation in Iranian-Israeli tensions could take oil prices above $80 and would mean more upside for the dollar.