Oil Prices Surge Amid Iran Tensions as Wall Street Struggles
Oil prices surged on Wednesday as tensions in the Middle East rose, but technology stocks weighed heavily on Wall Street ahead of the Federal Reserve's interest rate decision. The S&P 500 fell 0.9%, while the Dow Jones Industrial Average dropped 825 points, or 1.6%.
The price of Brent crude jumped 6.7% to $87.60 per barrel as fighting resumed in Iran, raising concerns about oil flow through the Strait of Hormuz. The Federal Reserve maintained interest rates at a range of 3.5 percent to 3.75 percent after voting 10-3 to keep them steady.
The Fed's decision came despite growing pressure to address inflation directly. In its press release, the central bank noted that economic activity is expanding at a solid pace, with strong productivity growth and capital investment. However, it acknowledged elevated uncertainty due in part to the conflict in the Middle East.