US-Iran Conflict Sparks Oil Price Surge and Stock Market Decline
The US launched military action against Iran in the Strait of Hormuz on Sunday, sparking a surge in oil prices and a decline in stock markets.
The price of Brent crude rose by 2.7% to $90.49 per barrel, while the S&P 500 index fell 0.5%. The Dow Jones Industrial Average dropped 361 points, or 0.7%, as of 10:50 a.m. Eastern time.
The energy sector saw gains, with Exxon Mobil rising 2% and Chevron increasing by 1.9%. However, the broader market losses were widespread, affecting nearly every sector within the S&P 500.
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 driven up energy prices and fueled already stubbornly high inflation, weighing on household spending and consumer confidence.