US Stocks Fall Amid Iran Strike, Oil Prices Soar
The stock market closed August on a downbeat note as US forces struck Iranian rocket launchers in the Strait of Hormuz, causing oil prices to rise and stocks to fall.
The S&P 500 index fell 0.3%, with nearly every sector finishing in the red, except for energy stocks, which notched gains. Exxon Mobil rose 2.7% and Chevron rose 2.1%.
The US war with Iran has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments, leading to higher energy prices. The price of Brent crude, the international standard, rose 2.7% to settle at $90.49 per barrel on Monday.
The national average for gasoline has been above $4 per gallon every day in August, making it the most expensive month on record. This has fueled already stubbornly high inflation, weighing on household spending and consumer confidence.