US Strike on Iran Pushes Oil Prices Higher, Stocks Lower

The US military launched its first strike in over a month against Iranian rocket launchers on the Strait of Hormuz, causing a surge in oil prices and mixed reactions in global markets.

The price of Brent crude rose 3.2% to $90.91 per barrel, while stocks fell on Wall Street with the S&P 500 index dropping 0.4%, the Dow Jones Industrial Average falling 348 points or 0.7%, and the Nasdaq losing 0.3%. Energy stocks were an exception, with Exxon Mobil rising 2.9% and Chevron increasing by 3%.

The US-Iran conflict has led to high oil prices, making gasoline and shipped goods more expensive, and contributing to stubbornly high inflation, which remains above 3%, far beyond the Federal Reserve's target of 2%. The Fed is expected to raise interest rates at least once before the year ends in an effort to cool inflation.