Oil Prices Spike Above $100 Amid Escalating Middle East Conflict

Oil prices surged past $100 a barrel on Wednesday, driven by escalating conflict in the Middle East. Brent crude futures rose as much as 3% to a session high of $100.95 after Iran said it fired ballistic missiles at a U.S. base in Jordan.

The latest surge in energy prices has fueled concerns that higher inflation will prompt central banks to keep monetary policy tighter for longer. Stock markets across the globe came under pressure, with the Dow Jones Industrial Average down 0.75% in early trading and the S&P 500 dropping 0.30%.

The euro edged higher ahead of the European Central Bank's policy decision on Thursday, rising to a more than one-week high of $1.16493 as markets widely expect a hike amid inflationary pressures from the Iran war.