Oil Prices Soar Past $100/Barrel Amid Escalating US-Iran Conflict
Stocks on Wall Street fell sharply Wednesday as oil prices jumped above $100 a barrel following further escalation in the US war with Iran.
The S&P 500 index dropped 0.3%, while the Dow Jones Industrial Average plummeted 407 points, or 0.8%, by 9:52 am Eastern time. The Nasdaq composite fell 0.4%.
The losses were widespread, with retailers among the companies leading the market lower. Amazon slid 1.9% and Starbucks dropped 1.5%. However, oil companies bucked the trend, with Exxon Mobil rising 2.5% and Chevron climbing 2.3%.
The surge in oil prices is largely due to the ongoing conflict between the US and Iran, which has resulted in the destruction of five Iranian tankers. The Strait of Hormuz, a vital shipping route through which a fifth of the world's oil supply passes, remains shut down.