Oil Prices Surge as Iran Conflict Blocks Hormuz Tankers

U.S. stock indexes remained largely flat on Wednesday as oil prices rose 3.4% to $94.07 per barrel. Brent crude briefly exceeded $95, marking a six-week high, because fighting in the ongoing war involving Iran, the United States, and Israel blocked oil tankers from navigating the Strait of Hormuz.

This surge in energy costs increased U.S. gas prices to an average of $4.06 per gallon and pushed the 10-year Treasury yield to 4.65%. The resulting risk of reaccelerated inflation has raised concerns that the Federal Reserve System may increase interest rates.