Oil Prices Surge as US Strikes Iranian Sites
The US military's strikes against Iranian sites in the Strait of Hormuz have sent oil prices rising and stocks falling on Wall Street. The S&P 500 index dropped 0.4%, while the Dow Jones Industrial Average lost 348 points, or 0.7%, as of 9:51 a.m. Eastern time. Energy stocks were an exception to the losses, with Exxon Mobil rising 2.9% and Chevron up 3%. The price of oil has been affected by the ongoing conflict in the Middle East, which has curtailed traffic through the Strait of Hormuz.
The national average for gasoline in August has surpassed $4 per gallon every day this month, marking the most expensive August at the pump on record. Higher energy prices have fueled inflation, making household spending and consumer confidence more uncertain. The Federal Reserve is facing a complicated path ahead with its interest rate policy, as the rate of inflation remains above 3%, far beyond its 2% target.