Trump's Vow of Retaliation Sends Oil Prices Soaring

Global oil prices surged by nearly 8% on Wednesday after US President Donald Trump vowed to retaliate against Iran for its missile attack. The rise in oil prices comes after a brief calm that had given investors hope of a negotiated resolution.

The Dow Jones Industrial Average dropped 1,153 points or 2.1%, while the S&P 500 and Nasdaq declined 1.5% and 1.7% respectively. This marks the worst day for the Dow since April 2025.

The Federal Reserve held interest rates steady on Wednesday but voiced a commitment to address elevated inflation, which has risen to 3.5%. The Fed attributed the inflation to 'supply shocks' that have driven price increases in sectors including energy.