Wall Street Stocks Fall as Oil Prices Surge Past $100 Barrel Amid Iran Conflict
Stocks on Wall Street took a hit as oil prices surged past $100 a barrel following further escalation of the US-Iran conflict. The S&P 500 index dropped 0.3%, while the Dow Jones Industrial Average fell 327 points, or 0.6%. Oil companies bucked the trend, with Exxon Mobil rising 2.6% and Chevron up 2%. The price of Brent crude, the international standard, reached $101.21 a barrel, its highest level since July.
The Iran war has severely impacted global oil supplies, causing prices to spike. The conflict began in February and has led to a near-shutdown of traffic in the Strait of Hormuz, where 20% of the world's oil supply passes through. President Donald Trump predicted that the war will continue to drive up oil prices at least until November's US midterm elections.
The sharp increase in oil prices has contributed to high inflation, with gasoline prices rising 32% over the past year to $4.22 per gallon. The price of diesel hit an all-time high and continues to climb, reaching $5.94 a gallon overnight. Rising fuel costs have a direct impact on household budgets and also indirectly increase prices for goods due to higher shipping costs.