US-Iran Tensions Send Wall Street Stocks Plummeting

Stocks on Wall Street declined Wednesday as oil prices surged above $100 a barrel due to escalating tensions between the US and Iran. The S&P 500 index fell 0.5%, with every sector except energy experiencing losses.

The Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite gave up 0.6%. Oil prices have been a major driver of market action, with Brent crude rising 3.4% to settle at $101.21 a barrel.

Exxon Mobil rose 2.2% and Chevron added 1.9%, as oil companies notched gains in the energy sector.

The Iran war is likely to keep oil prices elevated through November, according to President Donald Trump. Higher fuel prices have fueled inflation, with gasoline prices up about 32% from a year ago to $4.22 per gallon.

Wall Street will get more updates on inflation this week, starting with the release of the Producer Price Index for August and followed by the Consumer Price Index.