Middle East Conflict Sends Oil Prices Soaring Past $97

Oil prices surged on Tuesday to near $100 per barrel as the Middle East conflict escalated. The Houthis said Saudi Arabia retaliated with strikes after targeting oil facilities in an effort to seize territory near the Bab al-Mandeb Strait.

The price of Brent crude, the benchmark international contract, rose to $97.92 per barrel. Major US indices spent most of the day in the red before closing firmly lower, with the S&P 500 losing 0.6 percent.

Escalating geopolitical tensions in the Middle East are dampening investor sentiment on Wall Street, as rising crude prices place inflation risk at the forefront of the fixed-income conversation, said a note from Interactive Brokers' Jose Torres.

Average diesel prices in the US hit a record high on Monday, according to the motorists' association AAA. US Treasury bond yields have also moved higher, reflecting worries about inflation and heavy issuance of corporate and government debt.