TOKYO — U.S. stocks fell on Wall Street Wednesday as the price of crude oil rose above US$100 a barrel amid further escalation in the U.S. war with Iran. The S&P 500 index fell 0.3 per cent. The Dow Jones Industrial Average fell 407 points, or 0.8 per cent, as of 9:52 a.m. Eastern time. The Nasdaq composite fell 0.4 per cent. The losses were broad, with retailers among the companies leading the market lower. Amazon fell 1.9 per cent and Starbucks fell 1.5 per cent. Nearly every sector within the benchmark S&P 500 lost ground, but oil companies pushed higher. Exxon Mobil rose 2.5 per cent and Chevron rose 2.3 per cent. Oil prices drove much of the action on Wall Street. The U.S. destroyed five Iranian tankers on Tuesday in a series of attacks between the two nations. The conflict that began in February has essentially shut down traffic in the vital Strait of Hormuz, where a fifth of the world’s oil supply passed before the war began. The price of Brent crude, the international standard, rose 2.8 per cent to US$100.62 a barrel. It marks the first time the price surpassed US$100 a barrel since July. The jump in oil prices over the course of the war has fueled already high inflation. Gasoline prices in the U.S. are up about 32 per cent from a year ago to US$4.22 per gallon. Higher fuel prices cut into household budgets directly when it comes to the cost of driving, but they also indirectly raise prices for goods because of higher shipping costs. Diesel prices, which can have an outsized impact on consumers because it is used in shipping and production, hit an all-time high Friday and have continued to climb since. The average price for a gallon reached US$5.94 overnight and is now 9 cents higher than it was Friday. Inflation was already stubbornly high when the U.S. started its war against Iran because of the ongoing U.S. trade war with much of the world. That trade war is also heating up, especially between the U.S. and its close ally and trade partner Canada. Elsewhere in the market, shares of Meta Platforms rose 5.6 per cent as the parent company of Instagram and Facebook launched a personal artificial intelligence agent, Muse, for people 18 and over who are looking for help with day-to-day tasks like schedules and shopping. Markets in Europe fell while markets in Asia closed mixed. ___ Damian J. Troise, The Associated Press AP Business Writers Yuri Kageyama and Michelle Chapman contributed to this report.
