Oil Prices Soar Amid Middle East Tensions, Dragging Stocks Down

New York (AP), Brent oil surged to its highest price since May after increased fighting in the Middle East threatened to slow global crude flow, pushing stocks lower. The S&P 500 fell 1.2%, while the Dow Jones Industrial Average dropped 506 points or 1%.

The price for a barrel of Brent crude oil jumped 7% to settle at $100.69, after touching $102 during the day. The increase is attributed to attacks on two Saudi oil tankers in the Red Sea, which threatens another avenue for oil companies to move their crude from the Middle East.

President Donald Trump threatened 'major military punishment' against the Houthi rebels in Yemen if they continue attacking ships. This has sent shockwaves through the market, with investors focusing on rising oil prices and its impact on inflation and interest rates.