Oil Prices Soar as US Strikes Iranian Sites
The US military launched its first attack on Iran in over a month, sending shockwaves through global markets. The S&P 500 index fell 0.5% and the Dow Jones Industrial Average dropped 333 points, or 0.6%, as of 1:20 pm Eastern time.
The energy sector saw some gains, with Exxon Mobil rising 1.7% and Chevron increasing by 1.5%. However, Edison International plummeted 23.8% and PG&E fell 18.8% after reports about potential California wildfire legislation that would allow insurers to sue utilities over related claims.
The conflict has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments. As a result, Brent crude rose 2.8%, reaching $90.59 per barrel on Monday. The national average for gasoline has been above $4 per gallon every day of August, making it the most expensive month at the pump on record.