Oil prices surge and stock markets swing as conflict with Iran escalates

A military conflict between the United States and Iran caused a sharp spike in global oil prices, with crude briefly reaching $100 per barrel. This triggered volatility in financial markets, with U.S. stocks initially falling before recovering some ground.

The price jump for oil and gasoline began affecting consumer sentiment and inflation forecasts. The U.S. dollar strengthened as investors sought safe assets, while the Trump administration estimated the initial cost of the conflict at over $11 billion.