Energy prices have emerged as a critical factor in the Federal Reserve's interest rate policy, according to Thomas Hulick, CEO of Strategy Asset Managers. Despite expectations for the Fed to maintain current interest rates, rising oil prices above $85 are fueling inflation expectations and causing volatility in U.S. Treasury yields. Hulick highlighted ongoing Middle East tensions, particularly involving Iran and the Strait of Hormuz, as contributing to market sensitivity to inflation risks. He suggested that oil prices may need to decrease to around $70 per barrel for yields to stabilize and align with economic fundamentals.