Oil Prices Soar as Iran Conflict Escalates, Fed Rate Decision Looms
Markets on Wall Street were mixed ahead of the Federal Reserve's latest decision on interest rates, which is expected to be announced later Wednesday. The US central bank has been growing impatient with inflation, which has been above its 2% target for five years. Oil prices jumped more than 4% after Jordan and the US knocked down an Iranian missile barrage launched against American forces in the Middle East.
Brent crude, the international standard, rose to $85.79 a barrel, while benchmark US crude gained $3.78 to $83.04 a barrel. The calm in the Iran war had persisted for about three days following weeks of escalation over the strategic Strait of Hormuz, but was shattered by the latest missile launch.
On Wall Street, futures for the S&P 500 gained 0.2% in premarket trading, while futures for the Dow Jones Industrial Average lost 0.3%. Nasdaq futures rose 0.3%. Generac shares jumped 4.3% after the maker of backup power supplies breezed past Wall Street profit targets.
However, Procter & Gamble shares slid more than 3% after it said organic sales were flat in the fourth quarter, missing Wall Street's expectations of growth of 2%. Meta, Microsoft, and Starbucks are set to release their latest results after the closing bell.