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Listen to this article in summarized format The S&P 500 fell 0.3%, while the Dow Jones Industrial Average dropped 407 points, or 0.8%, as of 9:52 a.m. ET. The Nasdaq composite was down 0.4%, with losses spreading across most sectors of the benchmark index. The selloff reflected growing concern that the oil shock could become a broader economic problem. Brent crude, the international benchmark, rose 2.8% to $100.62 a barrel, crossing the $100 threshold for the first time since July. Oil has become one of the most visible pressure points for the US economy as the war has effectively halted traffic through the Strait of Hormuz. Before the conflict, roughly a fifth of the world's oil supply passed through the vital waterway, according to AP. The latest escalation came after the US destroyed five Iranian tankers on Tuesday in a series of attacks between the two countries. The conflict, which began in February, has increasingly disrupted energy supplies and pushed crude prices higher. That surge is already reaching consumers. US gasoline prices are up about 32% from a year ago, with the average price reaching $4.22 a gallon. The impact does not stop at the gas station. More expensive fuel raises transportation and shipping costs, making it more expensive to move goods and potentially pushing prices higher across the economy. Diesel is adding to the pressure. The average price reached $5.94 a gallon overnight after hitting an all-time high on Friday. Because diesel is heavily used in shipping and production, sustained increases can ripple through supply chains and eventually reach consumers. For markets, the timing is particularly uncomfortable. Inflation was already proving stubborn because of the US trade war with much of the world, while tensions are also intensifying between Washington and Canada, one of its closest allies and major trading partners, AP reported. The combination of higher energy costs and existing trade pressures could make the inflation outlook more difficult, raising concerns about how much room policymakers have to support the economy if growth comes under pressure. The market reaction was visible across companies. Retailers led some of the declines, with Amazon down 1.9% and Starbucks falling 1.5%. Oil producers, however, benefited from the jump in crude prices, with Exxon Mobil gaining 2.5% and Chevron rising 2.3%. Meta Platforms was among the notable gainers, rising 5.6% after the parent company of Instagram and Facebook launched Muse, a personal artificial intelligence agent for adults seeking help with everyday tasks such as scheduling and shopping. But the broader market remained focused on oil. With crude back above $100, investors are now confronting the possibility that an energy shock could keep inflation elevated even as higher costs begin to weigh on household spending and corporate margins. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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