US-Iran Conflict Drives Oil Prices Above $100 a Barrel

Stocks on Wall Street fell sharply as oil prices surged past $100 a barrel for the first time since July, driven by escalating tensions between the US and Iran.

The price of Brent crude rose 3.4% to settle at $101.21 a barrel, while Exxon Mobil and Chevron notched gains of 2.2% and 1.9%, respectively.

President Donald Trump warned that the ongoing conflict is likely to keep oil prices elevated through the US midterm elections in November.

The Iran war has essentially shut down traffic in the Strait of Hormuz, where a fifth of the world's oil supply passed before the war began.

Rising Treasury yields and inflation concerns also weighed on stocks, with the 10-year Treasury yield reaching its highest point since late October 2023 at 4.85%.