Oil prices top US$81 a barrel amid Iran war, pushing global markets down
Global News
The price for a barrel of benchmark U.S. crude shot up 8.5 per cent Thursday to settle at US$81.01 per barrel, the highest level since the summer of 2024.
Stocks sank on Wall Street Thursday after the price of oil spiked to its highest level since the summer of 2024 because of the war with Iran.
The S&P 500 fell 0.6% and erased what had been a small gain for the year so far. The Dow Jones Industrial Average briefly dropped more than 1,100 points before finishing with a loss of 784, or 1.6%. The Nasdaq composite slipped 0.3%.
The S&P/TSX composite index was down 332.89 points at 33,609.97.
The losses came as financial markets around the world keep following the cue of oil prices. Sharp increases there are raising worries that a long-term surge could grind down the global economy, exhaust households’ ability to spend and push interest rates higher.
The price for a barrel of benchmark U.S. crude shot up 8.5% Thursday to settle at $81.01 per barrel. Brent crude, the international standard, climbed 4.9% to $85.41 per barrel and is likewise near its highest price since 2024.
Oil prices gave back some of those gains later in the day, which helped stocks in the U.S. moderate their losses at the end of trading. But worries nevertheless remain high about how long disruptions will last for oil production because of the escalating war with Iran.
Prices at U.S. gasoline pumps have already leaped because of them. The average price for a gallon is $3.25, up 9% from $2.98 a week ago, according to auto club AAA.
U.S. President Donald Trump said on Thursday that he was not concerned about rising gas prices, telling Reuters in an exclusive interview that the U.S. military operation was his priority.
