Oil Price Surge Sends Dow Jones Plummeting
US stocks took a hit on Wednesday as oil prices surged above $100 per barrel for the first time since July. The escalation of the US-Iran war has disrupted global energy supplies, pushing crude prices higher and causing concern about its broader economic impact.
The Dow Jones Industrial Average dropped 407 points or 0.8% to 9:52 a.m. ET, while the S&P 500 fell 0.3%. The Nasdaq composite was down 0.4%, with losses spreading across most sectors of the benchmark index.
The oil shock is putting pressure on households and businesses as US gasoline prices are up about 32% from a year ago, with the average price reaching $4.22 a gallon. Diesel prices have also reached an all-time high at $5.94 a gallon overnight, which could ripple through supply chains and eventually reach consumers.
Oil producers benefited from the jump in crude prices, with Exxon Mobil gaining 2.5% and Chevron rising 2.3%. However, retailers led some of the declines, with Amazon down 1.9% and Starbucks falling 1.5%.