Oil prices spike, stocks drop amid Middle East tensions

Oil prices surged above $90 a barrel, with Brent crude settling at $90.65, the highest since October. US stocks plummeted, with the S&P 500 down 1.2% and Nasdaq 1.4%. Geopolitical tensions in the Middle East drove investors to safe-haven assets like US Treasuries and the Japanese yen. The rise in oil prices, influenced by Middle East tensions and supply constraints, poses challenges for central banks combating inflation.