Iran Conflict Sends Stocks Plummeting as Oil Prices Soar

The US military's attack on Iranian sites in the Strait of Hormuz sent shockwaves through Wall Street, causing stocks to plummet and oil prices to soar. The S&P 500 index fell by 0.3%, while the Dow Jones Industrial Average dropped a more significant 0.7%. This marked a downbeat end to August for the market.

The losses were widespread across nearly every sector in the S&P 500, with only energy stocks showing gains. Exxon Mobil rose 2.7% and Chevron climbed 2.1%, but this was largely offset by significant declines elsewhere. Edison International fell 23.1% and PG&E dropped 20.1% after reports of potential California wildfire legislation that would allow insurers to sue utilities over related claims.

The US war with Iran has been a major concern for Wall Street, particularly given its impact on global oil supplies. The Strait of Hormuz accounts for around 20% of the world's oil shipments, and tensions in the region have caused prices to remain high despite an initial surge earlier in the conflict.