US-Iran Conflict Spurs Stock Market Decline and Rising Oil Prices

The stock market closed out August on a downbeat note as stocks fell and oil prices rose after the U.S. launched its first military action in a month against Iran.

The S&P 500 index fell 0.3%, while the Dow Jones Industrial Average dropped 0.7% and the Nasdaq composite slipped 0.1%. Energy stocks, however, notched gains, with Exxon Mobil rising 2.7% and Chevron increasing by 2.1%.

The rise in oil prices is attributed to the U.S. war with Iran, which has curtailed traffic in the Strait of Hormuz, accounting for about 20% of the world's oil shipments. The price of Brent crude rose 2.7% to settle at $90.49 per barrel on Monday.

The national average for gasoline in August has been above $4 per gallon every day, making it the most expensive month on record. Higher energy prices have fueled stubbornly high inflation, weighing on household spending and consumer confidence.