Oil Prices Soar as Stocks Fall Amid US-Iran Conflict
The price of oil rose and stocks fell on Wall Street Monday after the US launched its first military action in a month against Iran. The S&P 500 index fell 0.4%, with the Dow Jones Industrial Average dropping 305 points, or 0.6%, by 11:51 am Eastern time.
The US war with Iran has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments, making everything from gasoline to shipped goods more expensive. The price of Brent crude rose 2.8%, to $90.58 per barrel on Monday.
The US job market remains resilient but is showing signs of weakening. Any increase in interest rates that could cool inflation also risks hurting the jobs market. The Federal Reserve gets its next inflation update on September 11, just days ahead of its next meeting to determine interest rate policy.