US-Iran Conflict Sends Oil Prices Soaring, Stocks Tumbling
Stocks took a hit on Wall Street as US forces launched their first military action in a month against Iran. The move led to increased oil prices and higher energy costs, weighing on household spending and consumer confidence.
The S&P 500 index fell by 0.3%, while the Dow Jones Industrial Average dropped 0.7%. Energy stocks bucked the trend, however, with Exxon Mobil rising 2.7% and Chevron increasing 2.1%.
The price of Brent crude oil rose by 2.7% to settle at $90.49 per barrel on Monday, marking its highest level since the US-Iran conflict began.
Higher energy prices have fueled stubbornly high inflation, which remains above 3%. The Federal Reserve is set to raise interest rates in an effort to cool inflation, with a 66% chance of a rate hike at its next meeting on September 11.