Brent Settles at Highest Since April as Iran Fears Push Stocks Lower

Rising oil prices weighed on Wall Street on Friday, and the move adds another layer of uncertainty for crypto markets heading into next week's Federal Reserve meeting.

The close

Brent crude rose 3.1% to settle at $116.72 a barrel, its highest settlement since April, while U.S. benchmark West Texas Intermediate gained 3.8% to $103.27, CNBC reported. The gains followed reports that the U.S. and Israel may be preparing renewed strikes on Iran, with Iran saying it is ready to respond. Reuters also pointed to Houthi attacks in Saudi Arabia as a source of concern over Middle East supply.

Stocks fell. The Dow Jones Industrial Average dropped 652.82 points, or 1.23%, to 52,215.16. The S&P 500 lost 0.52% to 7,623.68, and the Nasdaq Composite slipped 0.21% to 25,955.34, according to Reuters. Energy shares rose to a record high, while consumer and financial stocks lagged.

Why it matters for crypto

Higher oil prices can keep inflation elevated, which makes it harder for central banks to ease policy. The Fed raised rates in September, and analysts broadly expect it to hold at its Oct. 27-28 meeting while keeping the door open to another increase later. Tighter financial conditions have tended to weigh on speculative assets such as bitcoin.

Bitcoin was little changed on Friday near $81,000 to $82,000, showing less reaction than stocks. Traders will also watch big tech earnings next week, which Reuters noted include Alphabet, Microsoft and Amazon.