Oil Prices Surge Past $100 a Barrel Amid Ongoing US-Iran Tensions
Stocks on Wall Street declined Wednesday as oil prices rose above $100 a barrel for the first time since July amid ongoing tensions between the US and Iran.
The S&P 500 index fell 0.5%, the Dow Jones Industrial Average dropped 0.8%, and the Nasdaq composite gave up 0.6% due to broad losses across sectors, except for energy.
Oil prices have been driven higher by the US-Iran conflict, which has essentially shut down traffic in the Strait of Hormuz, where a fifth of the world's oil supply passes through.
President Donald Trump said the Iran war is likely to keep oil prices elevated at least until the US midterm elections in November.
The jump 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.