Iran Strike Sparks Oil Price Surge, Stocks Take Hit
US military action against Iran's rocket launchers on the Strait of Hormuz sent oil prices soaring, while stocks took a hit. The S&P 500 index fell 0.3%, and the Dow Jones Industrial Average dropped 0.7%. Energy stocks saw gains, with Exxon Mobil rising 2.7% and Chevron increasing 2.1%.
The US war with Iran has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments. The price of Brent crude, the international standard, rose 2.7% to settle at $90.49 per barrel on Monday.
The national average for gasoline in August has been above $4 per gallon every day, making it the most expensive month at the pump on record. Higher energy prices have fueled stubbornly high inflation, weighing on household spending and consumer confidence.