Stocks Fall, Oil Prices Rise as US Hits Iranian Sites
Wall Street closed out August on a downbeat note as stocks fell and oil prices rose after the U.S. launched its first military action in a month against Iran.
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, notched gains, with Exxon Mobil rising 2.7% and Chevron increasing by 2.1%.
The U.S. war with Iran has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments. As a result, oil prices remain high after an initial surge earlier in the war. Brent crude rose 2.7% to settle at $90.49 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. Higher energy prices have fueled stubbornly high inflation, which is weighing on household spending and consumer confidence.