Brent oil prices reached their highest level since May as Middle East fighting and corporate losses drove the U.S. stock market down.
Brent oil prices jumped 7% to settle at $100.69 on Thursday, marking the highest price since May. The surge was driven by attacks on two Saudi oil tankers in the Red Sea, which threatened global crude flow. In response to the maritime disruptions, President Trump threatened "major military punishment" against the Houthi rebels in Yemen if they continue to attack ships. The rise in oil prices contributed to the U.S. stock market's worst loss in a month. The S&P 500 fell 1.2%, the Dow Jones Industrial Average dropped 506 points, and the Nasdaq composite sank 2.2%. Significant losses were seen in major companies, including Tesla, which tumbled 14.5% on weaker-than-expected profits, and Alphabet, which fell 7.1% despite strong revenue. Investors expressed concern that higher fuel costs will worsen inflation, potentially prompting the Federal Reserve to raise interest rates. Meanwhile, gasoline prices rose to an average of $4.09 per gallon across the United States.