Brent Oil Surges Past $100 as Alphabet and Tesla Drag Down Stocks

The price of Brent oil briefly surged past $100 per barrel on Thursday, its highest level since May, due to increased fighting in the Middle East that threatens to slow global crude flow. This sharp increase came as two major Wall Street companies, Alphabet and Tesla, dragged down the US stock market with significant losses.

Alphabet's parent company of Google reported stronger profit and revenue than analysts expected, but its stock fell 7.1% due to concerns over its planned investments in artificial intelligence. Meanwhile, Tesla tumbled 14.5% after reporting a weaker-than-expected profit for the latest quarter.

The sharp drops in oil prices will likely worsen inflation, which had begun to decelerate by more than economists expected. This could lead central banks, including the Federal Reserve, to raise interest rates and slow economies, potentially undercutting stock prices and other investments.