Oil prices surged on Thursday, sparking concerns in the stock market amid the escalating war in the Middle East, UNN reports with reference to CNN.
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The Dow Jones Industrial Average fell 601 points, or 1.24%, resuming its decline after stocks closed higher on Wednesday. The S&P 500 index fell 0.5%, and the high-tech Nasdaq index fell 0.2%.
Oil prices jumped to their highest level since mid-2024. WTI crude oil prices rose 5.5% to $78.80 per barrel. Brent crude oil, the international benchmark, rose 3.96% to $84.62 per barrel.
The US dollar strengthened against other major currencies, driven by investors seeking safe-haven assets. The dollar index rose 1.7% this week.
Treasury yields rose as investors sold bonds and assessed the potential inflationary impact of rising oil prices. The yield on 10-year Treasury notes reached 4.13%, the highest level in three weeks.
Wall Street's fear index, the VIX, jumped 10%. According to CNN's Fear & Greed Index, fear was the driving force in the markets.
"We are not yet seeing any signs of de-escalation, and oil prices continue to rise," said Jim Reid, head of global macroeconomic research at Deutsche Bank, in his report.