Oil Price Surge Looms as Biggest Threat to US Stocks

A rise in oil prices poses the biggest risk to US stocks, according to Morgan Stanley strategist Michael Wilson.

The price of Brent crude has increased by 30% since July to around $93 per barrel, which has led to higher interest rates.

Wilson recommends using energy stocks as a hedge against this risk, citing that they have performed well this year, with ExxonMobil and Chevron rising more than 30%.

The strategist warns that if oil prices continue to rise, it could force Federal Reserve Governor Kevin Warsh to respond with tightening measures to bring inflation back under control.