Oil Prices Surge Back to May Levels, Dragging Stocks Down

The price of oil has climbed back to where it was in May, causing stocks to fall on Wall Street. The S&P 500 fell 0.6%, and the Dow Jones Industrial Average dropped 296 points, or 0.6%. This comes as Brent crude rose 3.5% and briefly topped $105 per barrel for the first time since May.

The jump in oil prices is attributed to the ongoing war with Iran, which has clogged the global flow of crude. The conflict has also pushed up inflation at the wholesale level, accelerating to 5.4% last month from 4.8% in July.

As a result, investors are betting on a roughly 70% chance that the Federal Reserve will raise its main interest rate, the federal funds rate, at its meeting next week.