Oil Prices Surge Above $100 as US-Iran Conflict Escalates

The US-Iran conflict escalated further on Tuesday with the destruction of five Iranian tankers by the US, leading to a surge in oil prices. The price of Brent crude rose 2.8% to $100.62 a barrel, its highest level since July.

Oil companies like Exxon Mobil and Chevron saw their shares rise as much as 2.5%, but the overall stock market took a hit due to rising oil prices. The S&P 500 index fell 0.3%, while the Dow Jones Industrial Average dropped 407 points, or 0.8%. The Nasdaq composite also fell 0.4%.

The increase in oil prices has fueled already high inflation, with gasoline prices in the US up about 32% from a year ago to $4.22 per gallon. Diesel prices have hit an all-time high of $5.94 per gallon and continue to rise.