Crude oil prices hit their highest level since 2023 amid Iran war, Wall Street falls sharply

The ongoing Iran war has caused significant turmoil in global financial markets. Crude oil prices have reached their highest level since 2023. Weak US employment data has also increased investor concerns, leading Wall Street to its worst weekly decline since October 2025.

The price of international benchmark Brent crude oil rose to around $92.69 per barrel. It surged by nearly 8.5 percent during trading, reaching its highest level since September 2023. Meanwhile, US benchmark crude oil also surpassed $90 for the first time, rising 12.2 percent to close at $90.90 per barrel.

The escalating war in the Middle East is believed to be a major factor behind this sharp rise in energy prices. This region is crucial for global oil and gas production and supply.

The surge in oil prices and weak US labor market data increased pressure on the stock market. The S&P 500 index fell 1.3 percent. The Dow Jones Industrial Average fell 945 points during trading and finally closed with a decline of 453 points, or 0.9 percent. The technology-based Nasdaq Composite also fell 1.6 percent.

Experts say this could be a sign of "stagflation," a situation in which economic growth slows but inflation remains high. Rising oil prices could further fuel inflation.

Meanwhile, the Federal Reserve faces a growing challenge, as rising inflation could make it difficult to cut interest rates despite signs of an economic slowdown.