Traders added to bets the Federal Reserve could raise interest rates, pricing in a full quarter-point by September after rising oil prices revived inflation concerns.

Swaps linked to the policy-meeting dates implied a rise of 25 basis points, from 23 basis points on Thursday and eight basis points earlier in the week. The move came amid thin trading volume as US markets closed for a public holiday.

New Chairman Kevin Warsh said the central bank would not tolerate higher inflation at its first meeting this week, after sending yields higher on Wednesday as investors priced in the Fed’s tightening policy. Oil rose nearly 4% from a three-month low on Thursday as doubts swirled around the recently signed peace deal between the US and Iran.

“We’re now at a point where it won’t take long to tip the balance in favor of hikes,” said Matthew Ryan, head of market strategy at Ebury, pointing to the rhetoric surrounding this week’s Fed decision. “Multiple references to the Fed missing its inflation target by five years all support the narrative that higher rates may not be far off.”

Investors did not expect such a hawkish tone from Warsh. US President Donald Trump elevated him to the central bank post after repeatedly attacking his predecessor Jerome Powell for not reducing borrowing costs sufficiently.

Meanwhile, Brent crude remained steady after peaking at $80 per barrel earlier in the session. Israel and Hezbollah have reportedly agreed to a ceasefire starting Friday.