Stocks fall and oil prices surge

Stocks fall and oil prices surge as Middle East conflict rages

By John Towfighi

Oil prices surged Thursday, stoking unease in the stock market as the war in the Middle East continued to spiral.

The Dow fell 601 points, or 1.24%, resuming a slide after stocks closed higher Wednesday. The S&P 500 fell 0.5%, and the tech-heavy Nasdaq moved 0.2% lower.

Oil prices jumped and traded at their highest level since mid-2024. US crude oil prices surged 5.5%, to $78.80 per barrel. Brent crude, the international benchmark, climbed 3.96%, to $84.62 per barrel.

The US dollar strengthened against other major currencies, benefiting from investors seeking safe havens. The dollar index is up 1.7% this week.

Treasury yields climbed as investors sold bonds and weighed the potential inflationary impact of higher oil prices. The 10-year Treasury yield hit 4.13%, its highest level in three weeks.

Wall Street’s fear gauge, the VIX, jumped 10%. “Fear” was the sentiment driving markets, according to CNN’s Fear and Greed Index.

“We’ve seen no signs of de-escalation yet, and oil prices are continuing to move higher,” Jim Reid, global head of macro research at Deutsche Bank, said in a note.