Oil Prices Soar Above $100 Amid Escalating Iran Conflict

The price of crude oil climbed back above $100 a barrel as the U.S. war with Iran escalated further, sending stocks on Wall Street lower.

The S&P 500 index fell 0.5%, while the Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite gave up 0.6%. The losses were broad across all sectors except for energy, which rose as oil companies like Exxon Mobil and Chevron notched gains.

The price of Brent crude, the international standard, increased by 3.4% to settle at $101.21 a barrel, its first time above $100 since July. The Iran war has essentially shut down traffic in the Strait of Hormuz, where a fifth of the world's oil supply passed before the conflict began.

The rising oil prices have fueled inflation, with gasoline prices up about 32% from a year ago to $4.22 per gallon. Higher fuel prices directly cut into household budgets and indirectly raise prices for goods due to higher shipping costs.