US-Iran Conflict Sends Oil Prices Soaring, Stocks Plummeting

The US military launched airstrikes against Iranian rocket launchers in the Strait of Hormuz on Sunday, escalating tensions in the region. The move sent shockwaves through global markets, with oil prices surging and stocks plummeting.

Oil prices rose 3.2% to $90.91 per barrel, while Brent crude, the international standard, also increased. This has led to higher energy costs for consumers, who are already facing stubbornly high inflation.

The S&P 500 index fell 0.4%, with nearly every sector losing ground. Energy stocks were a rare exception, with Exxon Mobil rising 2.9% and Chevron increasing 3%. The Dow Jones Industrial Average dropped 348 points, or 0.7%, as of 9:51 am Eastern time.

The US-Iran conflict has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments. This has led to higher energy prices and contributed to already high inflation, making it more complicated for the Federal Reserve to set interest rates.