Oil prices surge as Middle East tensions escalate, hitting markets

Oil prices have surged toward $100 a barrel as tensions in the Middle East escalate, particularly involving Iran. The situation is rattling financial markets, with Wall Street opening lower and shares falling in response.

Iran has escalated tanker attacks, and there are warnings its new leadership could keep the vital Strait of Hormuz shipping lane shut. The U.S. and other countries have responded by releasing oil from emergency reserves to try to calm prices, but the move has had limited effect so far.