Oil Prices Soar, US Stocks Slip Ahead of Fed Decision

Crude oil prices jumped again, leading to a slump in US stocks ahead of the Federal Reserve's decision on interest rates. The S&P 500 fell 0.2%, with the Dow Jones Industrial Average dropping 434 points and the Nasdaq composite down 0.2%. Brent crude oil surged 5.6% to over $86 per barrel after renewed fighting broke out in the Middle East.

The recent escalation in the Iran war led to a brief pause in hostilities, but Jordan's air defenses intercepted five Iranian missiles launched against American forces on Wednesday morning. This sparked a rebound in oil prices, which had eased from last week's two-month high.

The Federal Reserve is expected to make a decision on interest rates later today, with 76% of Wall Street traders predicting a rate hike in September. While higher rates typically hurt stock prices, Fed officials are growing impatient with inflation, which has been above target for five years.