Oil Prices Surge to Highest Levels Since May Amid Iran Conflict

Oil prices have surged to their highest levels since May due to ongoing concerns about global crude supply, particularly in light of the conflict between Iran and other countries. As a result, Brent crude briefly topped $108 per barrel for the first time since May before settling at $107.63. The price for U.S. crude also rose 6.7% to settle at $102.48, returning to pre-Memorial Day levels.

The increase in oil prices has had a ripple effect on other markets, with inflation worries and rising bond yields contributing to stocks declining across the board on Wall Street. The S&P 500 fell 0.6%, while the Dow Jones Industrial Average dropped 381 points, or 0.7%. The Nasdaq composite was also down 0.6%.

The Federal Reserve's decision to raise interest rates is now seen as increasingly likely, with a 73% chance of a rate hike next week according to data from CME Group. This move would aim to combat rising inflation and slow the economy, although President Trump has continued to advocate for lower interest rates.