New Delhi, March 1 -- The U.S. and Israeli strikes on Iran Saturday may jolt oil markets on Sunday evening. They could also dim the odds of Federal Reserve rate cuts this year.

Crude settled at $72.87 a barrel before the attacks. When trading resumes, prices are expected to rise as investors assess the risk to global supply, particularly through the Strait of Hormuz, which carries roughly one-fifth of the world's oil and liquefied natural gas.

Oil is likely to move higher when Asian markets open, with investors likely shifting toward dollar-denominated assets in the early phase of the conflict, said Joe Brusuelas, chief economist at RSM. If crude climbs and stays elevated, gasoline prices will likely follow.

Patrick De Haan, head of pe...