Brent Crude Tops $100 for First Time Since July as US-Iran Fighting Escalates in Persian Gulf

Brent crude oil crossed $100 a barrel on Wednesday, September 9, for the first time in roughly six weeks, as fighting between U.S. and Iranian forces intensified and raised serious concerns about sustained disruptions to Middle East energy supplies. The U.S. said it destroyed five Iranian crude oil vessels, while Tehran struck ships in the region, with worsening tensions over control of the Strait of Hormuz driving the price surge. The strait is a critical maritime chokepoint through which roughly 20% of the world's oil passes.

The move above $100 reignited fears of inflationary pressure and higher energy costs for consumers and businesses, with Morgan Stanley flagging oil prices and interest rates as the two main risks to equity markets. Wall Street sold off sharply on the news, with Dow futures falling as much as 400 points before the open. By midday, the Dow Jones Industrial Average was down roughly 300 to 350 points, the S&P 500 fell 0.17%, and the Nasdaq Composite dropped 0.36%. Canadian stocks also slipped as the TSX contended with both surging oil and separate trade tensions.