Rising Oil Prices Weigh on US Stocks and Interest Rates

US stocks fell Monday as rising oil prices increased pressure on inflation and financial markets. The S&P 500 dropped 0.5% and remains near its all-time high set Thursday, while the Dow Jones Industrial Average lost 272 points or 0.5%. The Nasdaq composite slipped 0.3%.

The price for a barrel of Brent crude oil rose 2.7% to $90.87 due to uncertainty about the war with Iran's impact on global oil flows. Last month, Brent prices zigzagged between $72 and $102 as hopes for a US-Iran deal rose and fell.

Higher oil prices worsened inflation and increased the likelihood that the Federal Reserve will hike interest rates. The yield on the 10-year Treasury climbed to 4.72% from 4.68% late Friday, with long-term mortgage rates jumping near their highest level in a year.