Oil Price Surge Triggers Stock Market Decline Amid Iran War Escalation
Stocks on Wall Street declined sharply Wednesday as oil prices surged back above $100 a barrel, fueled by escalating tensions in the US war with Iran.
The S&P 500 index fell 0.5%, the Dow Jones Industrial Average dropped 0.8%, and the Nasdaq composite gave up 0.6% as retailers led the market lower. Amazon plummeted 1.8%, Starbucks lost 1.9%, and Home Depot dropped 1%. Energy companies, however, bucked the trend, with Exxon Mobil rising 2.2% and Chevron adding 1.9%
The price of Brent crude, the international standard, jumped 3.4% to settle at $101.21 a barrel, its highest point since July. The Iran war is likely to keep oil prices elevated through November's US midterm elections, according to President Donald Trump.
Rising fuel prices are fueling inflation, with gasoline prices in the US up about 32% from last year to $4.22 per gallon. Higher shipping costs and increased production expenses also contribute to higher consumer prices.