Oil Prices Soar Amid Middle East Tensions, Dragging US Stocks Down

Oil prices surged on Wednesday after fighting resumed in the Middle East, causing uncertainty about global oil flows and inflation concerns. The price of Brent crude jumped 7.3% to settle at $88.09 per barrel.

The jump in oil prices led to a decline in US stocks, with the S&P 500 falling 1.5%. The Dow Jones Industrial Average dropped 2.2%, and the Nasdaq composite slumped 1.7% below its record set last month.

The Federal Reserve kept interest rates steady, but three members of the policymaking committee voted to raise rates. Fed Chairman Kevin Warsh implied that the bond market may be doing some work to restrain inflation, pointing to how yields have climbed since the central bank's last meeting six weeks ago.