Wall Street Plunges as Middle East Conflict Drives Oil Spike

Wall Street closed sharply lower Friday as Middle East conflict intensified, pushing oil prices higher and stoking global inflation concerns.

Brent crude surged 3.3% to $112.19 a barrel; West Texas Intermediate rose 2.3% to over $98. The spike followed drone attacks on Kuwait’s Mina Al-Ahmadi refinery and Iranian missile strikes on Qatar’s Ras Laffan natural gas complex-causing what Qatar’s state energy firm estimates could be $20 billion in annual revenue losses and require five years to repair.

Investors grew increasingly nervous about the Strait of Hormuz, a critical chokepoint for 20% of global oil and LNG flows, now at risk amid regional hostilities.

The S&P 500 dropped 1.5%. Angelo Kourkafas of Edward Jones warned that prolonged high energy prices-not just current levels-are driving market volatility.

Federal Reserve Governor Christopher Waller reversed his stance on interest rate cuts, citing elevated inflation risks from sustained oil price pressure due to what he described as a “much more protracted conflict.”