Oil Prices Soar Above $US100 as Stocks Plummet

The price of crude oil surged above $US100 per barrel, causing stocks on Wall Street to decline on Wednesday. The S&P 500 index fell 0.5%, while the Dow Jones Industrial Average dropped 0.8%. The Nasdaq composite gave up 0.6%.

The increase in oil prices was driven by the ongoing conflict between the US and Iran, which has disrupted traffic in the Strait of Hormuz. President Donald Trump stated that the Iran war will likely keep oil prices elevated at least through the US midterm elections in November.

Rising inflation is a concern for investors, with petrol prices up about 32% from last year to $US4.22 per gallon. The price of diesel reached an all-time high on Friday and has continued to climb since, now averaging $US5.94 per gallon.