Oil Price Surge Triggers Stock Plunge Amid Escalating US-Iran Tensions

The US-Iran war escalated on Wednesday, driving oil prices above $100 a barrel for the first time since July. As a result, stocks fell on Wall Street, with the Dow Jones Industrial Average plummeting 407 points or 0.8%.

Oil companies bucked the trend, however, as Exxon Mobil rose 2.5% and Chevron climbed 2.3%. The jump in oil prices has fueled already-high inflation, with gasoline prices increasing by about 32% from last year to $4.22 per gallon.

The conflict between the US and Iran began in February and has severely impacted global oil supply, with the Strait of Hormuz seeing reduced traffic since then. Brent crude, the international standard, rose 2.8% to $100.62 a barrel on Wednesday.