Oil Prices Soar as Stocks Fall After U.S. Strikes Iranian Targets
The U.S. military's strike on Iranian targets in the Strait of Hormuz led to a drop in stocks and an increase in oil prices, causing concern for investors.
The S&P 500 index fell 0.3%, while the Dow Jones industrial average dropped 0.7% and the Nasdaq composite slipped 0.1%. Energy stocks, however, showed gains with Exxon Mobil rising 2.7% and Chevron increasing 2.1%.
The U.S. war with Iran has been ongoing for more than six months, with the Strait of Hormuz being a key location due to its significance in global oil trade. The curtailed traffic in the strait has led to higher oil prices, making products such as gasoline and shipped goods more expensive.
The price of Brent crude rose 2.7% to settle at $90.49 per barrel on Monday. This is a significant increase from earlier in August when it fell below $80 per barrel.