Oil jumps about 4% on shipping attacks and Gulf hurricane shutdowns
Brent topped $104 a barrel at its high. Energy was the S&P 500's best sector.
Oil prices jumped on Thursday. Brent crude, the international benchmark, rose from a prior close of $100.20 to above $104 a barrel at its high, and both Brent and US crude settled roughly 4% higher.
Two supply worries at once
Reports tied the move to two things. First, renewed attacks on commercial vessels in the Middle East, which raised fears for tanker traffic through the Strait of Hormuz. Second, hurricane-related production shutdowns in the US Gulf of Mexico. Together they raised concern about near-term supply.
What it meant for stocks
Energy was the best-performing sector in the S&P 500 on the day. Oil also feeds into inflation. In his speech on Thursday, Fed Governor Christopher Waller listed the conflict in the Middle East and the resulting high energy prices among the forces that have kept inflation from falling.
What to watch
Whether attacks on shipping continue, and how quickly Gulf of Mexico production returns once the storm passes. Oil moved a lot within the session, so the closing level is only one snapshot.