Oil Prices Soar Above $100 a Barrel, Sparking US Stock Market Sell-Off

US stock futures fell sharply on Thursday as crude oil prices surged above $100 a barrel and Treasury yields climbed to multi-year highs.

The Dow Jones Industrial Average futures dropped about 0.3%, S&P 500 futures lost nearly 0.5%, and NASDAQ-100 futures plummeted more than 1% following a three-day slide for the major US indexes.

Oil prices rose after disruptions in energy flows through the Strait of Hormuz and the Red Sea due to the ongoing US-Iran war, with WTI crude climbing over 4% and brent crude moving above $105 a barrel.

Treasury yields rose as investors priced in the risk that higher energy costs could keep inflation elevated, with the 10-year Treasury yield moving above 4.9%, its highest level since 2023.