Oil Prices Soar as Middle East Tensions Rise

Oil prices surged on Wednesday as fighting in the Middle East escalated, but US stocks drifted lower ahead of a Federal Reserve decision on interest rates.

The S&P 500 sank 0.7%, while the Dow Jones Industrial Average was down 760 points, or 1.4%, and the Nasdaq composite was 1% lower due to sinking technology stocks.

Brent crude leaped 6% to $87.01 per barrel after Iran launched a barrage of missiles at American forces in the Middle East, raising worries about the global flow of oil.

The price swings have raised concerns that inflation will reaccelerate, which would make traders uncertain about what the Federal Reserve will announce on interest rates later in the day.