August Ends on Weaker Note as US-Iran Tensions Rise
Wall Street finished August on a weaker note as rising U.S.-Iran tensions increased concerns about energy prices, inflation, and the Federal Reserve's interest-rate path. This was after President Trump ordered an attack on Iranian rocket launchers in late August, which pushed crude oil prices higher.
Brent crude futures rose above $88 per barrel, while the United States Brent Oil Fund LP BNO added 4.9% over the past month (as of Aug. 31, 2026). The Federal Reserve's hawkish tone was also a concern for investors, with Fed Chairman Kevin Warsh warning that inflation remains too elevated and indicating more work to be done.
The Treasury Department doubled its bond buyback operation to at least $4 billion from $2 billion in late August, containing rising bond yields. This move gave fresh momentum to the debasement trade (read: GLD, IBIT, and other ETFs). The U.S. dollar fell to a three-month low against the euro in mid-August due to concerns about additional pressure on the greenback.
Crypto-related shares rallied in August, with Bitcoin soaring 23% over the past month and crossing the $80K-mark in late August. Ethereum added about 32% over the same period (read: Bitcoin Reclaims $69K on Treasury Move: More ETF Upside Ahead?). The White House meeting involving President Trump and cryptocurrency executives revived expectations for progress on the CLARITY Act and a more favorable U.S. digital-asset framework.