US Markets Plummet as Iran Strike Sends Oil Prices Soaring
US markets fell after American forces struck Iranian rocket launchers in the Strait of Hormuz on Sunday, marking their first military action in a month. The strike has raised concerns about escalating tensions and its impact on global oil prices.
The S&P 500 and Dow Jones Industrial Average futures declined by 0.2% on Monday, while Nasdaq futures slipped 0.1%. Oil prices surged more than 3%, with Brent crude jumping to $91.10 per barrel and US benchmark crude rising to $86.40 per barrel.
Stephen Innes of SPI Asset Management noted that the Middle East had gone quiet enough for oil traders to start removing the 'war premium' from crude prices, but Sunday's strike has changed that dynamic.
The increased oil prices have led to higher gasoline costs in the US, with the national average above $4 per gallon every day in August. This is the most expensive August at the pump on record, surpassing even the 2022 COVID-19 pandemic-related supply chain crunch.