US-Iran Conflict Fuels Oil Price Surge, Stocks Tumble
The US military launched its first major action against Iran in over six months, striking Iranian rocket launchers on the Strait of Hormuz. This move sent shockwaves through the global markets, with oil prices surging and stocks falling.
Oil prices rose 2.7% to $90.49 per barrel, while Brent crude reached a new high. The price increase has led to higher energy costs for consumers, contributing to stubbornly high inflation rates. The national average gasoline price has been above $4 per gallon every day in August, making it the most expensive month on record.
The Federal Reserve is closely monitoring inflation and is expected to raise interest rates at least once before year-end to combat rising costs. However, a rate hike could hurt the jobs market, which has already shown signs of stalling. The US will release August's jobs data later this week, with economists watching for any indications of a slowdown.