Oil Prices Soar to $100 as Middle East Fighting Sparks Market Rout

Brent oil prices surged to their highest level since May, reaching $100.69 per barrel after increased fighting in the Middle East threatened to slow global crude flow.

The rise in oil prices is putting pressure on businesses and eroding customers' ability to spend, leading to a downturn in stocks. The S&P 500 fell 1.2%, with the Dow Jones Industrial Average dropping 506 points, or 1%, and the Nasdaq composite sinking 2.2%.

The sharp drops for Alphabet and Tesla yanked the U.S. stock market to its worst loss in a month. The price increase is also expected to worsen inflation, which could push the Federal Reserve and other central banks to raise interest rates.