Oil Price Surge Pushes US Stocks Downwards Amid Ongoing Tensions

Rising oil prices are sending shockwaves through the US stock market, pulling it further away from its record high. The S&P 500 fell 0.8% and gave back most of its gains from last week, while the Dow Jones Industrial Average dropped 372 points, or 0.7%. The Nasdaq composite was 1% lower.

The increase in oil prices is largely due to uncertainty over when the war with Iran will allow tankers to flow freely again through the Strait of Hormuz. President Donald Trump's rejection of an offer from Iran to reopen the strait and resume talks on its nuclear program has added to the tension.

Brent crude oil rose 2.8% to $100.19 per barrel, surpassing the roughly $72 it cost before the US and Israel attacked Iran in late February. This increase in oil prices is putting pressure on the economy, with inflation worsening as the average price for a gallon of regular gasoline reaches nearly $4.48 from $3.13 a year ago.