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Oil prices surge after Trump vows retaliation for Iranian attack
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Global oil prices surged nearly 8% to over $90 a barrel following an Iranian missile attack and President Trump's vow of reprisal, ending hopes for a negotiated resolution and escalating tensions.
- Major U.S. stock indexes plunged sharply, with the Dow Jones falling 1,153 points (2.1%), marking its worst day since April 2025, as the Federal Reserve held interest rates steady but signaled a strong commitment to combat elevated inflation.
- The U.S. intercepted multiple ballistic missiles targeting American forces in the Middle East, prompting Trump to warn of a hard response against Iran, intensifying geopolitical risks affecting markets.
- The conflict has caused significant volatility in oil prices and contributed to rising inflation, with gasoline prices jumping 37% since the war began, exacerbating economic pressures on consumers.
- The Federal Reserve acknowledged "elevated" inflation partly due to supply shocks in energy sectors and reaffirmed its goal to achieve price stability despite ongoing global uncertainties.
