Oil prices rose above $90 a barrel and US stocks tumbled as flaring tensions in the Middle East sent tremors through markets. Brent crude oil futures rose 1.5 per cent on Thursday to settle at $90.65 a barrel — the highest closing price since October — as traders weighed the potential for Iran’s backlash after a suspected Israeli attack on its consulate in Damascus. Wall Street’s blue-chip S&P 500 stock index closed 1.
But analysts were unsure about the influence of Kashkari’s comments on the market given that he does not have a vote on the Fed’s interest rate policy panel this year. The US dollar index, which tends to move with rate expectations, was unchanged on the day.
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