ANKARA (AA) – US stock market reversed earlier gains and closed lower Tuesday as a surge in oil prices fueled fears of higher inflation which is already at a 40-year high.

The Dow Jones industrial average was down 88.2 points, or 0.26%, to close at 34,219.

The S&P 500 fell 14.5 points, or 0.33%, to end at 4,389.

The tech-heavy Nasdaq was off 40.4 points, or 0.30%, to finish at 13,371.

Annual consumer inflation in the US rose 8.5% in March — the largest 12-month increase since December 1981, according to the US Department of Labor.

Crude oil prices spiked more than 6% because of easing demand fears after China relaxed strict lockdown measures and OPEC signaled supply risks if Russian oil is fully banned.

Global oil benchmark Brent crude was trading at $104.76, jumping 6.38%, while US benchmark West Texas Intermediate (WTI) was at $100.72 — a 6.82% hike.

The VIX volatility index, known as the fear index, rose 0.45% to 24.48. The dollar index increased 0.38% to 100.3 while the yield on 10-year US Treasury notes fell 0.055% to 2.727%.

Precious metals were on the rise with gold up 1.07% to $1,969 per ounce and silver gaining 2.45% to $25.60.