Oil Prices Surge Amid Tensions in Iran, Weighing on US Stocks

The US stock market is experiencing mixed results after a three-day weekend as tensions in the war with Iran continue to impact oil prices. The S&P 500 fell by 0.4%, while the Dow Jones Industrial Average dropped 575 points, or 1.1%. Meanwhile, the price of Brent crude rose 0.6% to $97.54 after briefly reaching $99.46.

The increase in oil prices has worsened concerns about inflation, which is expected to accelerate to 5.4% by the end of August, up from 4.7% in July. The US government will release its inflation report on Thursday, and another update on consumer inflation is scheduled for Friday. Economists anticipate that this latter report will show a slight easing of inflation to 3.3%, but still above the Federal Reserve's target of 2%.

The Fed's decision on interest rates is highly anticipated, with traders betting on a 60% probability of a rate hike at its next meeting on September 16. However, President Donald Trump has been lobbying for lower interest rates instead.