US Stocks Plunge as Oil Tops $100 Amid Iran Tensions
U.S. stocks closed lower on Wednesday as global crude oil prices surged past $100 per barrel, driven by escalating U.S.-Iran hostilities and intensifying inflation fears.
The Dow Jones Industrial Average fell by 405.41 points, or 0.77 percent, to 52,380.66. The S&P 500 sank 37.16 points, or 0.48 percent, to 7,636.36. The Nasdaq Composite Index shed 168.07 points, or 0.64 percent, to 26,253.34.
Brent oil prices breached triple digits for the first time in over a month after the United States struck five Iranian oil tankers, stoking fresh supply disruption fears across the Strait of Hormuz. Brent crude for November delivery gained $3.29, or 3.36 percent, to settle at $101.21 per barrel on the London ICE Futures Exchange.
The surge in energy costs added to market anxieties ahead of the Federal Reserve's policy meeting next week, with traders pricing in a roughly 60 percent probability that the central bank will raise interest rates by 25 basis points to combat lingering price pressures.