Oil Prices Surge Above $100 as US-Iran Tensions Escalate

Asian markets took a downturn on Thursday, following a retreat on Wall Street as oil prices surged above $100 a barrel for the first time since July. The price of Brent crude jumped 3.4% on Wednesday and added another 0.3% early Thursday to reach $101.52 a barrel.

U.S. President Donald Trump stated that oil prices likely won't fall until after U.S. midterm elections, as tensions between the U.S. and Iran continue to stifle oil flow through the Strait of Hormuz. The conflict has essentially shut down traffic in the Strait, where a fifth of the world's oil supply passed before the war began.

The S&P 500 index fell 0.5% on Wednesday, while the Dow Jones Industrial Average dropped 0.8%, and the Nasdaq composite gave up 0.6%. The indexes are all on track for a weekly loss. Retailers were among the companies that pulled the market lower, with Amazon falling 1.8%, Starbucks losing 1.9%, and Home Depot dropping 1%.