Iran Strike Sends Markets into Chaos

The US military's attack on Iranian sites in the Strait of Hormuz has sent shockwaves through global markets, causing stocks to plummet and oil prices to soar.

The S&P 500 index fell 0.3%, while the Dow Jones Industrial Average dropped 0.7%. Energy stocks, however, bucked the trend, with Exxon Mobil rising 2.7% and Chevron increasing by 2.1%.

The price of Brent crude oil rose 2.7% to settle at $90.49 per barrel on Monday, its highest level since the initial surge in the US-Iran conflict earlier this year. The national average for gasoline has been above $4 per gallon every day in August, making it the most expensive month at the pump on record.

The Fed's interest rate policy is also under scrutiny as inflation remains high, with Wall Street expecting a 66% chance of a rate hike at the next meeting. Fed Chair Kevin Warsh has hinted that a rate increase might be necessary to cool inflation, which has been above 3% for several months.