Oil Prices Soar as Trump Vows Retaliation Against Iran
Oil prices surged on Wednesday after US President Donald Trump vowed to retaliate against Iran for an overnight missile attack. The benchmark index for worldwide crude prices jumped over 7%, crossing above $90 a barrel.
The sudden increase in oil prices comes as investors had briefly hoped for a negotiated resolution between the US and Iran, which would have calmed markets. However, Trump's vow of reprisal has rekindled price gains, leading to a sharp rise in fuel costs.
The average price of a gallon of gas currently stands at $4.09, according to AAA, marking a 37% jump since war broke out in late February. Major stock indexes tumbled on the news, with the Dow Jones Industrial Average plummeting 710 points, or 1.3%, while the S&P 500 increased 0.6%. The tech-heavy Nasdaq declined 0.8%.
The Fed held interest rates steady on Wednesday, citing 'elevated' inflation attributed in part to 'supply shocks that have driven price increases in certain sectors, including energy.'