US-Iran Conflict Drives Oil Prices to Record Highs

The US launched its first military action in a month against Iran on Sunday, prompting a surge in oil prices. The price of Brent crude rose 3.2% to $90.91 per barrel on Monday. This increase in oil prices has led to higher energy costs for consumers, with the national average for gasoline reaching above $4 per gallon every day in August for the first time ever.

The conflict between the US and Iran has had a significant impact on the global economy, particularly in terms of inflation. The rate of inflation remains well above 3%, which is far beyond the Fed's 2% target. This has given the Federal Reserve a more complicated path ahead for its interest rate policy.

The job market remains resilient but is showing signs of weakening. The US reports August jobs data later this week, and the July numbers showed an unexpected stall in the job market as employers cut 23,000 jobs.