Iran Strike Sends Oil Prices Soaring Amid Stock Market Slide
The U.S. military's strike on Iranian sites in the Strait of Hormuz has sent oil prices rising and stocks plummeting, marking a downbeat close to August for Wall Street.
On Monday, the S&P 500 index fell 0.3%, while the Dow Jones Industrial Average dropped 0.7% and the Nasdaq composite slipped 0.1%. The energy sector was one of the few bright spots, with Exxon Mobil rising 2.7% and Chevron increasing by 2.1%.
The escalation in tensions between the U.S. and Iran has had a significant impact on global oil prices, with Brent crude rising 2.7% to settle at $90.49 per barrel. The national average for gasoline in August has been above $4 per gallon every day of the month, marking the most expensive August on record.
The inflationary pressures fueled by higher energy prices have weighed heavily on household spending and consumer confidence. As a result, the Federal Reserve is expected to raise interest rates at least once before the year ends in an effort to cool inflation.