Oil Price Surge Weighs on Wall Street as Inflation Concerns Rise

U.S. stocks fell on Tuesday as investors reacted to higher oil prices, driven by ongoing fighting in the Middle East.

The S&P 500 dropped 0.6%, while the Dow Jones Industrial Average plummeted 628 points or 1.2% and the Nasdaq composite dipped 0.3%

Oil prices rose as Brent crude briefly climbed to $99.46, before settling at $97.92, a 0.9% increase from early July.

The higher oil prices are exacerbating concerns about inflation, which has been weighing on consumers and businesses across the country.

This week's reports on inflation will be crucial in determining the Federal Reserve's decision on interest rates next week.