Oil Prices Soar as Tensions with Iran Disrupt Global Crude Flows

Oil prices surged to their highest levels since before summer as tensions with Iran continue to disrupt global crude flows, pushing US stocks lower for a fourth consecutive day.

The S&P 500 fell 0.6% on Thursday, while the Dow Jones Industrial Average dropped 316 points and the Nasdaq composite sank 0.7%. Brent crude climbed 6.3%, briefly topping $108 per barrel before settling at $107.63.

The price increase has vaulted gasoline prices to an average of nearly $4.28 across the US, up 34% from a year ago and affecting not only drivers but also producers of goods that rely on transportation.

Rising oil prices are also fueling inflation concerns, with wholesale inflation accelerating to 5.4% last month from 4.8% in July. This could lead to higher interest rates, which would have a ripple effect throughout the economy and bond market.