US Stocks Slide as Oil Prices Surge Amid Middle East Tensions
US stocks fell in early trading on Tuesday as investors digested the latest developments in the Middle East conflict. The S&P 500 dropped 0.2%, while the Dow Jones Industrial Average lost 543 points, or 1%. Brent crude oil prices rose 0.9% to $98.48 a barrel, their highest level in about six weeks.
The escalating tensions between Saudi Arabia and Iranian-backed rebels in Yemen have pushed up oil prices, with benchmark US crude surging 2.5% to $93.79 a barrel. This increase has raised costs for consumers and businesses alike, making this week's inflation data particularly important. The Federal Reserve will meet next week to decide on interest rates.
In Asia, Japan's Nikkei 225 sank 1.7%, with major exporters like Toyota Motor Corp. and Panasonic Holdings Corp. taking a hit due to the strengthening Japanese yen. South Korea's Kospi also fell back after an early rally, losing 0.6%.