Brent crude oil price hits $85 US a barrel, highest level in nearly 2 years | CBC News

"The S&P 500 fell 0.6 per cent 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 the day with a loss of 784, or 1.6 per cent. The Nasdaq composite slipped 0.3 per cent. The losses came as financial markets around the world keep following the cue of oil prices."

"The price for a barrel of benchmark U.S. crude shot up 8.5 per cent on Thursday to settle at $81.01 per barrel. Brent crude, the international standard, climbed 4.9 per cent 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."

"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. If oil prices spike further, such as to $100 per barrel, and stay there, some analysts and investors say it could be too much for the global economy to withstand."

"Prices at U.S. gasoline pumps have already risen because of them. The average price for a gallon is $3.25, up nine per cent from $2.98 a week ago, according to auto club AAA. Much will depend on what happens with the Strait of Hormuz. Roughly a fifth of the world's oil typically sails through the narrow waterway off Iran's coast."

Wall Street experienced significant losses on Thursday following a spike in oil prices triggered by escalating U.S.-Israeli tensions with Iran. The S&P 500 fell 0.6%, the Dow Jones dropped 1.6%, and the Nasdaq declined 0.3%, erasing year-to-date gains. Benchmark U.S. crude jumped 8.5% to $81.01 per barrel, while Brent crude climbed 4.9% to $85.41. Global financial markets are closely monitoring oil prices due to concerns that sustained increases could damage the global economy, reduce consumer spending, and raise interest rates. Gasoline prices have already risen to an average of $3.25 per gallon, up 9% from the previous week. Analysts warn that oil reaching $100 per barrel could prove unsustainable for the global economy. Market volatility remains high as investors assess potential disruptions to oil production through the Strait of Hormuz.

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