Oil Prices Soar Above $100 as US-Iran Conflict Escalates

US stock markets experienced another day of losses as oil prices surged above $100 per barrel following a violent escalation in the US-Iran conflict. The renewed violence has intensified fears that disruption around the Strait of Hormuz could lead to higher inflation and complicate the Federal Reserve's next interest-rate decision.

The Dow Jones Industrial Average fell 1.2%, or 628 points, to 52,786.07 on Tuesday, while the S&P 500 dropped 0.6% to 7,673.52. The Nasdaq Composite declined 0.3% to 26,421.41.

On Wednesday, crude prices broke through a psychologically important level as Brent crude briefly moved above $100 a barrel for the first time since July. West Texas Intermediate climbed above $94 a barrel.

The conflict has reduced shipping activity through the Strait of Hormuz, one of the world's most important energy chokepoints. Iran carried out the single largest attack in the waterway, striking 10 vessels in retaliation for overnight US strikes on five Iranian oil tankers.