Oil Price Surge Crushes US Stocks Amid Strait of Hormuz Uncertainty
US stocks fell sharply on Monday as surging oil prices weighed heavily on investors. The S&P 500 dropped 0.4%, while the Dow Jones Industrial Average plummeted 274 points, or 0.5%. Brent crude oil rose to $98.92 per barrel, a 1.5% increase from the previous day.
The uncertainty surrounding the Strait of Hormuz and its impact on global oil supplies has been driving market volatility in recent weeks. President Donald Trump rejected an offer from Iran over the weekend to reopen the strait and resume nuclear talks, citing that any deal would not be acceptable.
Oil prices have been fluctuating wildly since the US and Israel attacked Iran in late February. Brent crude oil has risen significantly, reaching as high as $101 per barrel earlier in the day before paring its gains.