US Oil Prices Surge Above $100 as Tensions with Iran Escalate
The price of US crude oil has surged above $100 for the first time since May due to ongoing tensions between the US and Iran. The conflict has resulted in a significant reduction in oil supply through the Strait of Hormuz, where a fifth of the world's oil passes.
US stock futures fell sharply, with the S&P 500 down 0.5% and the Nasdaq off by 1.1%. The European Central Bank raised its key interest rate to try to tame inflation in the European Union, but stock indexes in Europe still fell.
The jump in oil prices is pushing up prices for many goods, including gasoline, which has risen by over 32% from a year ago to $4.22 per gallon. Higher fuel costs are cutting into household budgets and also indirectly raising prices for goods due to higher shipping costs.