By Laura Barron-Lopez - 06/13/14 10:50 AM EDT
The price of oil continued on its upward climb Friday as sectarian fighting in Iraq escalated, sending a chill through financial markets.
Prices neared $107 a barrel as the widening insurgency caused concern that crude supplies from Iraq, OPEC's No. 2 producer, may be devastated, The Associated Press reported.
For now Iraq remains ahead of Iran in vying for OPEC's No. 2 spot, but the price hike is a troublesome development for the U.S. and other major economies, according to The Wall Street Journal (subscription required).
Dow Jones Industrial Average fell 109.69 points, while the S&P 500 index fell 13.78 points.
"Higher oil prices are certainly a tax on the economy, and that's probably a reason for the equity selloff," Nic Johnson, a portfolio manager who oversees commodity investments at Pacific Investment Management Co. in Calif. told the Journal.