Brent crude oil prices surged above $99 a barrel on Tuesday before paring gains, raising concerns that rising energy costs could derail the U.S. stock market's impressive rally. The spike, driven by supply fears and geopolitical tensions, threatens to boost inflation and pressure corporate margins. Investors worry that sustained high oil prices could force the Federal Reserve to keep interest rates higher for longer, undermining equity valuations.

Despite the pullback from intraday highs, the energy sector's strength signals persistent upward pressure. Analysts suggest that if oil breaches the $100 mark, it could trigger a broader market selloff, especially in rate-sensitive growth stocks. However, some argue that the U.S. economy's resilience and strong earnings may cushion the impact.

The market's reaction in coming sessions will hinge on oil's trajectory and upcoming economic data.