Oil Surges, Stocks Drop on Mideast Unrest; Gold Rises to Record

Oil surged to a 29-month high amid speculation unrest in the Middle East and northern Africa will disrupt supplies. U.S. stocks sank on concern rising energy costs will threaten the economic recovery, while Treasuries reversed losses and gold advanced to an all-time high.

Oil for April delivery rallied 2.7 percent to settle at $99.63 a barrel, the highest since Sept. 30, 2008. The Standard & Poor’s 500 Index slid 1.6 percent to 1,306.33 at 4 p.m. in New York after yesterday capping a third straight monthly gain. Ten-year Treasury yields lost three basis points to 3.40 percent after rising six points earlier. Gold futures for April delivery climbed as much as 1.8 percent to a record $1,435.60 an ounce.