Oil Prices Soar as Iran Fires Missile Barrage at US Forces

Oil prices jumped again on Wednesday as tensions in the Middle East escalated. The price of Brent crude leaped 5.6% to more than $86 per barrel after Jordan and the U.S. knocked down an Iranian missile barrage launched against American forces.

The S&P 500 fell 0.2%, while the Dow Jones Industrial Average dropped 434 points, and the Nasdaq composite was down 0.2%. The action was stronger in the oil market, where prices had eased from last week's two-month high.

The Federal Reserve is set to make a decision on interest rates later Wednesday, but markets are not expecting any change. With inflation still above its target and unemployment low at 4.2%, traders foresee a rate hike in September, with 76% predicting it according to the CME FedWatch tool.