Economists raised their US inflation estimates and pushed out their timeline for the next Federal Reserve interest-rate cut as the price shock triggered by the Iran war starts to spread beyond higher energy costs.

A "majority" of Federal Reserve officials believed the central bank could raise interest rates if inflation stays high, according to the minutes from the central bank's April 28-29 policy meeting. Why it matters: It suggests that a larger constituency than previously known is backing the possibility of higher interest rates,

A majority of officials anticipated that interest rate increases would be necessary if the Iran war continued to aggravate inflation.

Quick Read SPDR S&P 500 ETF (SPY) trading at historical multiples compressed from 16-18 to 14-15 when ten-year inflation breakevens reached 3%, a pattern that preceded the 2008 financial crisis when long-run expectations last hit current levels 19 years ago.

Fed minutes released Wednesday show officials divided over inflation risks from the Iran war, with most open to possible rate hikes if price pressures persist. While rates were held steady, dissent rose to a 1992 high.

Federal Reserve officials’ concerns about inflation being stoked by the Iran war intensified last month, with a growing number of them saying the central bank should lay the groundwork for a possible rate hike,

The Middle East war and an AI boom have reshaped the interest-rate outlook ahead of a leadership transition at the central bank.

CNBC's Steve Liesman reports on the latest news regarding the Federal Reserve.