Oil Prices Soar Over $85 as Fighting Flares in Middle East

Oil prices have surged over $85 as fighting intensifies in the Middle East, with Brent crude rising 4.1% to $86.73 a barrel and US benchmark crude up 3.1% at $80.55 a barrel. The uncertainty over the future stability of supplies has deepened as the US and Iran each assert they control the Strait of Hormuz, driving up fuel prices worldwide. The price increase is attributed to the fighting in the region, which has kept oil tankers from using the waterway to deliver crude to customers from the Persian Gulf. As a result, wholesale gas prices have increased considerably, and retail gas prices are expected to rise above $4 in several states. The surge in oil prices has also affected the stock market, with the S&P 500 and Dow Jones Industrial Average experiencing losses. The situation is being closely monitored, with companies releasing their quarterly results and the Federal Reserve potentially raising interest rates to combat inflation.