US-Iran Tensions Ease, Stocks Bounce as Oil Prices Plummet
Stocks on Wall Street opened higher Monday, but closed in mixed fashion as oil prices dropped following a decrease in tensions between the U.S. and Iran.
The S&P 500 rose less than 0.1% after fluctuating throughout the day between small gains and losses. The Dow Jones Industrial Average increased by 0.5%, while the Nasdaq composite fell 0.2%, marking its fourth straight loss.
Oil prices plummeted, with Brent crude dropping 6.3% to settle at $85.87 a barrel for October delivery. U.S. crude oil for September delivery decreased by 7.5% to settle at $82.61 a barrel.
The war between the U.S. and Iran has significantly curtailed traffic through the Strait of Hormuz, affecting global economies. Gasoline prices have surged, leading to higher shipping costs that businesses pass on to households.