world-economy

Crude Oil Surges as U.S.-Iran Tensions Reignite Market Volatility

Crude oil prices climbed roughly 7% Wednesday after President Trump ended a ceasefire agreement with Iran, triggering fresh instability across global markets. U.S. military operations targeted Iranian coastal installations in response to reported Iranian attacks on vessels in the Strait of Hormuz, a critical chokepoint for international shipping. The equity market sold off sharply, with the Dow Jones Industrial Average declining more than 800 points, or 1.5%, reversing gains from earlier in the week. Gas prices at the pump rose less than a penny per gallon overnight but face upward pressure as refiners absorb higher crude costs. Markets did not expect a return to full-scale conflict, based on the muted price response. The Federal Reserve continues to face pressure from geopolitical uncertainty and inflationary risks.