Middle East Tensions Send Stocks Lower Amid Higher Oil Prices

U.S. stocks opened lower on Monday as tensions in the Middle East escalated, pushing crude prices higher and raising concerns about inflation and interest rates.

The Dow Jones Industrial Average slipped around 0.5%, while the S&P 500 declined 0.4% and the Nasdaq Composite fell 0.3%.

Brent crude climbed back above $90 a barrel after U.S. forces targeted Iranian rocket launchers near the Strait of Hormuz, prompting Iran and its allies to respond with strikes.

The increased energy costs have complicated the outlook for inflation, while investors are also weighing expectations for Federal Reserve policy, potentially adding pressure to interest rates.