Oil Prices Soar as Fed Decision Looms

Oil prices surged on Wednesday as fighting resumed in the war between Iran and the US, raising concerns about global oil supply. The price of Brent crude leaped 6% to $87.01 per barrel after Iran launched a barrage of missiles at American forces in the Middle East.

The jump in oil prices has raised worries that inflation will reaccelerate, which could prompt the Federal Reserve to keep interest rates steady or even raise them. Traders are betting on a roughly 36% probability that the Fed will raise its main interest rate for the first time in three years.

The move higher in oil prices also weighed on technology stocks, with Nvidia and Advanced Micro Devices leading the decline. The S&P 500 sank 0.7%, while the Dow Jones Industrial Average dropped 1.4% as of 10:30 a.m. Eastern time.