Oil Price Surge Weighs on Wall Street Amid Escalating US-Iran Tensions

Stocks on Wall Street declined Wednesday as oil prices surged above $100 a barrel due to escalating tensions in the US-Iran conflict. The S&P 500 index fell 0.5%, while the Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite lost 0.6%. Retailers were among the companies that weighed on the market, with Amazon falling 1.8%, Starbucks declining 1.9%, and Home Depot dropping 1%.

The energy sector was a rare bright spot in an otherwise gloomy day for stocks, as oil companies like Exxon Mobil rose 2.2% and Chevron added 1.9%. The price of Brent crude, the international standard, jumped 3.4% to settle at $101.21 a barrel, marking its first time above $100 since July.

President Donald Trump said the Iran war will likely keep oil prices elevated until the US midterm elections in November. Higher fuel costs have fueled inflation, with gasoline prices up about 32% from last year to $4.22 per gallon.

The price of diesel hit an all-time high Friday and continued to climb, reaching an average of $5.94 per gallon overnight, a 9-cent increase since Friday. The ongoing US trade war with much of the world has also contributed to stubbornly high inflation.