Oil Prices Skyrocket Amid Trump's Threats of Retaliation Against Iran

Global oil prices surged over 7% on Wednesday after US President Donald Trump vowed to retaliate against an Iranian attack, sending shockwaves through markets.

The move came after a brief calm that had sparked hopes of a negotiated resolution. The Dow Jones Industrial Average plummeted 710 points, or 1.3%, while the S&P 500 increased 0.6% and the tech-heavy Nasdaq declined 0.8%.

Oil prices account for a large share of the price of auto gasoline, with the average price of a gallon currently standing at $4.09, a 37% jump since war broke out in late February. Trump's statement that 'We'll be hitting them hard' sent oil prices soaring above $90 a barrel.

The Iran conflict has caused dramatic swings in oil prices over recent weeks, with prices briefly falling to their lowest level since before the war on news of a preliminary peace agreement last month. However, the resumption of large-scale fighting between the US and Iran cast doubt over the deal's staying power.