US Stocks Fall as Oil Prices Surge Amid Iran Tensions
US stock futures fell on Monday after the US launched its first military action in a month against Iran. The S&P 500 index dropped 0.4%, while the Dow Jones Industrial Average declined 348 points, or 0.7%. Energy stocks were a rare exception, with Exxon Mobil and Chevron rising 2.9% and 3%, respectively.
The US military struck Iranian rocket launchers on the Strait of Hormuz on Sunday, and the UAE intercepted an Iranian drone over its waters on Monday. The Strait of Hormuz accounts for about 20% of the world's oil shipments, and oil prices remain high after an initial surge earlier in the war.
The price of Brent crude rose 3.2%, to $90.91 per barrel on Monday. Gasoline prices have also surged, with the national average reaching above $4 per gallon every day in August for the first time ever.