Oil Price Surge Triggers Market Jitters as Tech Stocks Plummet

Oil prices surged on Wednesday as fighting escalated in the war between Iran and the US. The price of Brent crude jumped 6% to $87.01 per barrel, following a barrage of missiles launched by Iran at American forces in the Middle East.

The US military partnered with Saudi Arabia to strike Tehran-backed militias in Iraq, raising concerns about global oil flows. This uncertainty has caused oil prices to swing wildly in recent weeks, and Wednesday's jump was particularly sharp.

The price swings have raised worries that inflation will reaccelerate, just as it had begun to slow more than economists expected. This uncertainty is making traders cautious ahead of the Federal Reserve's decision on interest rates later today.

Meanwhile, tech stocks were battered on Wall Street, with the Nasdaq composite falling 1% and the S&P 500 sinking 0.7%. The Dow Jones Industrial Average was down 760 points, or 1.4%, as of 10:30 am Eastern time.