Dow Tumbles Amid Oil Price Surge
The Dow Jones Industrial Average fell 0.75% on Wednesday as Brent crude prices surged above $100 a barrel, reigniting inflation concerns and prompting investors to reevaluate their bets on Federal Reserve rate hikes.
Brent crude climbed to $100.95 a barrel after Iran launched ballistic missiles at a US base in Jordan, intensifying Middle East tensions and raising the specter of further disruptions to oil supplies.
The jump in oil prices comes as a result of escalating US-Iran tensions and has increased concerns about inflationary pressures across the economy, particularly with transportation and production costs potentially rising as a result.
Investors are closely watching upcoming US inflation figures for signs that higher energy costs are feeding into broader price increases, and the surge in oil prices has also changed expectations surrounding the Federal Reserve's interest-rate path.