Stocks retreat as U.S. oil prices top $100, threatening economy: Live updates

U.S. oil prices breached $100 per barrel Thursday, dragging equities lower as traders repriced inflation risk tied to an extended Middle East conflict. The Dow Jones Industrial Average fell 316 points on the session, reflecting broad risk-off sentiment as energy costs spiked.

The move above the triple-digit threshold marks a critical psychological level for crude, amplifying concerns that sustained energy inflation will pressure corporate margins and consumer spending. Thursday's selloff centered on sectors most exposed to input cost shocks, with the Dow's decline signaling institutional caution ahead of earnings season.

Oil's rally stems from supply fears as Middle East tensions escalate, reviving the specter of stagflation—rising prices paired with slowing growth—that dominated 2022. The $100 breach also raises the stakes for Federal Reserve policy, potentially complicating any pivot toward rate cuts if headline inflation reaccelerates.