Crude Oil Surpasses $100 Per Barrel Amid Escalating US-Iran Tensions

US stocks took a hit on Wednesday as crude oil prices surpassed $100 per barrel for the first time since July, amid escalating tensions between the US and Iran. The conflict has effectively shut down traffic in the Strait of Hormuz, where nearly a fifth of the world's oil supply passes through.

The price of Brent crude, the international standard, rose 3.3% to $101.18 per barrel, with Exxon Mobil and Chevron leading the gains among oil companies. However, this surge has fueled already high inflation, with gasoline prices up about 32% from a year ago to $4.22 per gallon.

As the US war with Iran continues, Wall Street is bracing for further updates on inflation this week. The Producer Price Index and Consumer Price Index reports are expected to show that inflation remains above 3%, which has been a concern for the Federal Reserve. With interest rates holding steady, there's a 60% chance of a rate hike at next week's meeting.