Oil prices keep rising and weigh on Wall Street

New York — U.S. stocks slipped on Tuesday as the market reopened after a weekend break, following heightened tensions in the ongoing conflict with Iran that sent oil prices soaring. The S&P 500 declined by 0.4 percent, the Dow Jones Industrial Average dropped by 575 points or 1.1 percent, and the Nasdaq composite slipped by 0.1 percent by noon Eastern time.

Brent crude oil prices climbed 0.6 percent to $97.54 per barrel, having briefly surged to $99.46, driven by the persistent disruption in global oil supply due to escalating hostilities in the Middle East. Since early July, oil prices have risen from around $72 as the situation escalated, exacerbating concerns about the high inflation gripping households and businesses nationwide.

This context adds significance to upcoming economic data releases. On Thursday, the U.S. government is set to publish its August report on wholesale inflation, with economists anticipating a steepening to 5.4 percent from 4.7 percent in July. The more widely followed report on inflation that directly impacts consumer sentiment is slated for release on Friday.