Oil Prices Soar as Fed Holds Interest Rates Amid Middle East Tensions

Oil prices have surged following reports of fighting in the Middle East, causing US stocks to trim their losses after the Federal Reserve decided not to raise interest rates to combat inflation.

The Fed's decision was seen as a boost for the stock market, but investors' enthusiasm was short-lived as concerns over global tensions drove oil prices up. The price of oil jumped 1% on the news, with West Texas Intermediate crude rising to $96.50 per barrel.

US stocks initially fell following the Fed's decision, but managed to recover some losses later in the day. The S&P 500 index dropped by 0.5%, while the Dow Jones Industrial Average declined by 0.3%.