Oil Prices Soar Amid Middle East Tensions, Dragging Stocks Down

The global economy took a hit as Brent oil prices surged to their highest level since May at $100.69 per barrel due to increased fighting in the Middle East, threatening to slow crude exports.

Meanwhile, US stocks plummeted, with Alphabet and Tesla leading the decline. The S&P 500 fell 1.2%, while the Dow Jones Industrial Average dropped 506 points or 1%. The Nasdaq composite sank 2.2%.

The rise in oil prices will likely worsen inflation, prompting central banks to raise interest rates and slow economies.