Oil Prices Soar as Trump Threatens Retaliation Against Iran
Global oil prices surged by nearly 8% on Wednesday after US President Donald Trump vowed to retaliate against Iran for its missile attack. The benchmark index for worldwide crude prices climbed above $90 a barrel, while major stock indexes plummeted.
The Dow Jones Industrial Average closed down 1,153 points, or 2.1%, marking its worst day since April 2025. The S&P 500 dropped 1.5%, and the tech-heavy Nasdaq declined 1.7%.
Trump's promise of retaliation came after an overnight missile attack launched by Iran. The US intercepted an 'attempted surprise attack' involving multiple ballistic missiles, which targeted US forces in the Middle East on Tuesday.
The Fed held interest rates steady and voiced a forceful commitment to address elevated inflation, which has risen to 3.5% annually. Oil prices account for a large share of the price of auto gasoline, with the average price of a gallon currently standing at $4.09, a 37% jump since war broke out in late February.