US Stocks Plummet Amid Iran Conflict and Soaring Oil Prices

The US stock market took a hit on Monday after the country launched its first military action in over a month against Iran. The S&P 500 index fell 0.5%, while the Dow Jones Industrial Average dropped 361 points, or 0.7%. Energy stocks were an exception, with Exxon Mobil rising 2% and Chevron increasing by 1.9%.

The US forces struck Iranian rocket launchers on the Strait of Hormuz on Sunday, which has led to a surge in oil prices. The price of Brent crude rose 2.7%, reaching $90.49 per barrel. This has made gasoline and shipped goods more expensive, fueling already high inflation.

The national average for gasoline has been above $4 per gallon every day in August, making it the most expensive month at the pump on record. Higher energy prices have given the Federal Reserve a complicated path ahead for its interest rate policy, as it tries to balance cooling inflation with supporting the job market.