US Federal Reserve Governor Christopher Waller has said he was concerned about the impact of the US-Israel war on Iran on inflation due to the prolonged closure of the Strait of Hormuz, AFP reports.

Waller, who has since last year backed interest rate cuts over labor market concerns, said he changed his mind in the last two weeks on the pace of interest rate cuts due to concerns about inflation.

“Since that time the Strait of Hormuz was closed, this is looking like it’s going to be a much more protracted conflict, and oil prices are going to stay high for a longer time,” he told US broadcaster CNBC on Friday.

“So that suggested inflation was more of a concern than I was putting it.”