Hormuz Strike Sends Oil Prices Soaring Amid Record Stock Rally

A US military strike near the Strait of Hormuz sent oil prices higher and shook record-setting stocks on Sunday, August 30. The attack targeted Iranian launchers on Larak Island after Revolutionary Guard forces were spotted preparing to launch rockets with sea mines into the strategic waterway.

The market reaction was swift: Dow futures fell 0.16%, while S&P 500 and Nasdaq-100 futures each slipped 0.2% in Sunday evening trading. However, oil prices surged, with West Texas Intermediate rising 2.47% to $85.46 a barrel and Brent increasing 2.71% to $90.49.

The strike marked the first known American attack on Iran since late July and broke a period of relative calm in the conflict that has dragged on for over six months. The Strait of Hormuz is a critical chokepoint for global oil supplies, with about a fifth of the world's oil passing through it.