Middle East Tensions Send Oil Prices Soaring Amid Fed Rate Hold

Oil prices surged 7.1% to $87.87 per barrel on Wednesday after fighting resumed in the Middle East, raising concerns about global oil flow.

The price of Brent crude had dropped as low as $72 earlier this month and risen as high as $102 last week due to uncertainty over a US-Iran deal allowing oil tankers to move freely from the Middle East to customers worldwide.

Meanwhile, the US stock market trimmed its losses after the Federal Reserve decided not to raise interest rates to combat inflation. The S&P 500 fell 0.3%, while the Dow Jones Industrial Average dropped 640 points, or 1.2%.

The Fed's decision was seen as a blow to tech stocks, particularly those related to artificial intelligence, which had been driving growth in recent months. Nvidia sank 2%, Advanced Micro Devices fell 3.2%, and Micron Technology dropped 5.4%. KLA Corp., which makes semiconductor products, fell 8% despite reporting stronger-than-forecast profit and revenue.

However, Apple's 1.3% rise helped limit the U.S. stock market's losses, as analysts say it has become an 'anti-AI' bet among Big Tech stocks due to its limited spending on AI technology.