US-Iran Conflict Sparks Market Turmoil, Higher Oil Prices

The US military's strike on Iranian sites in the Strait of Hormuz sent shockwaves through global markets, causing stocks to plummet and oil prices to surge. The S&P 500 index fell 0.3%, with nearly every sector finishing in the red.

Energy stocks bucked the trend, however, as Exxon Mobil rose 2.7% and Chevron gained 2.1%. The price of Brent crude, the international standard, jumped 2.7% to settle at $90.49 per barrel on Monday.

The high oil prices have fueled inflation, which remains above 3%, far beyond the Federal Reserve's 2% target. Wall Street expects the central bank to raise interest rates at least once before the year ends in an effort to cool inflation.