Federal Reserve rate expectations are collapsing across multiple strike prices, with the April 2027 above-2.75% market dropping 40¢ to 30¢ and the above-3.50% falling 28¢ to 28¢. This broad retreat reflects sliding expectations for Fed rate cuts as energy prices and inflation fears pop following U.S.-Israel attacks on Iran and oil prices bursting to around $100 a barrel. Traders have taken even a September cut off the table and now see only one coming in December, with no additional cuts priced in until well into 2027. The market is recalibrating to a reality where core PCE inflation may show an increase to 3.1% annually, representing a step further away from the Fed's 2% goal and giving officials pause about lower rates.