SynopsisUS stocks slipped as Brent crude climbed above $100 a barrel amid escalating US-Iran tensions and disruptions to oil shipments through the Strait of Hormuz. Rising fuel costs are renewing inflation concerns ahead of key US inflation data and complicating the Federal Reserve's interest-rate decision next week.

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4%, with losses spreading across most sectors of the benchmark index. The selloff reflected growing concern that the oil shock could become a broader economic problem.

62 a barrel, crossing the $100 threshold for the first time since July. Oil has become one of the most visible pressure points for the US economy as the war has effectively halted traffic through the Strait of Hormuz.

The latest escalation came after the US destroyed five Iranian tankers on Tuesday in a series of attacks between the two countries. The conflict, which began in February, has increasingly disrupted energy supplies and pushed crude prices higher.

That surge is already reaching consumers. 22 a gallon.

The impact does not stop at the gas station. More expensive fuel raises transportation and shipping costs, making it more expensive to move goods and potentially pushing prices higher across the economy.

Diesel is adding to the pressure. 94 a gallon overnight after hitting an all-time high on Friday.

Because diesel is heavily used in shipping and production, sustained increases can ripple through supply chains and eventually reach consumers. For markets, the timing is particularly uncomfortable.

Inflation was already proving stubborn because of the US trade war with much of the world, while tensions are also intensifying between Washington and Canada, one of its closest allies and major trading partners, AP reported. The combination of higher energy costs and existing trade pressures could make the inflation outlook more difficult, raising concerns about how much room policymakers have to support the economy if growth comes under pressure.

The market reaction was visible across companies. 5%.

6% after the parent company of Instagram and Facebook launched Muse, a personal artificial intelligence agent for adults seeking help with everyday tasks such as scheduling and shopping. But the broader market remained focused on oil.