Commodities
Oil Price Surge Sends Global Markets Reeling
Oil prices surged on Wednesday, causing stock markets across Canada and the US to tumble. The S&P/TSX composite index fell by 415.92 points to 35,333.78.
Étienne Bergeron, an economist at iA Financial Group, attributed the negative sentiment to the ongoing war in Iran and the escalation of fighting in the Middle East.
The Dow Jones industrial average dropped 1,153.18 points to 51,594.14, while the S&P 500 index fell by 112.63 points to 7,316.15. The Nasdaq composite was down 433.97 points at 24,442.94.
The price of Brent crude jumped 7.3% to settle at $88.09 per barrel. Bergeron warned that the effect on oil prices can translate into inflationary pressure and higher interest rates, which will weigh on global markets over time.