Oil Surges Above $100 Per Barrel Amid US-Iran Conflict Escalation

US stocks tumbled on Tuesday, falling by 1.2% as oil prices surged above $100 per barrel following a violent escalation in the US-Iran conflict.

The conflict intensified fears that disruption around the Strait of Hormuz could push inflation higher and complicate the Federal Reserve's next interest-rate decision.

Crude prices broke through a psychologically important level, with Brent crude briefly moving above $100 a barrel for the first time since July. West Texas Intermediate climbed above $94 per barrel.

The conflict has simultaneously reduced shipping activity through the Strait of Hormuz, one of the world's most important energy chokepoints.