Oil Prices Soar Above $100 a Barrel Amid Escalating Iran Tensions

Stocks on Wall Street continued their downward trend Wednesday, falling as oil prices surged back above $100 a barrel due to escalating tensions in the US war with Iran.

The S&P 500 index dropped 0.5%, while the Dow Jones Industrial Average fell 0.8% and the Nasdaq composite lost 0.6%. The losses were widespread, with retailers like Amazon (-1.8%), Starbucks (-1.9%), and Home Depot (-1%) leading the decline.

However, energy stocks bucked the trend, rising as oil companies notched gains. Exxon Mobil (+2.2%) and Chevron (+1.9%) saw their shares increase due to higher crude prices.

The price of Brent crude rose 3.4% to $101.21 a barrel, its first time above $100 since July. The Iran war is expected to keep oil prices elevated through the US midterm elections in November, according to President Donald Trump.

Higher fuel prices have fueled already high inflation, with gasoline prices up about 32% from last year to $4.22 per gallon. Diesel prices have also hit an all-time high, reaching $5.94 overnight and remaining 9 cents higher than Friday's price.