US Strike on Iran Triggers Market Volatility
The US launched military action against Iranian rocket launchers on Sunday, causing global markets to fluctuate. The S&P 500 index fell 0.4% and the Dow Jones Industrial Average lost 348 points, or 0.7%, as of 9:51 a.m. Eastern time.
Energy stocks were an exception, with Exxon Mobil rising 2.9% and Chevron gaining 3%. The losses were broad across all sectors in the S&P 500.
The price of Brent crude oil rose 3.2%, to $90.91 per barrel on Monday, as tensions escalate in the region. This has made oil prices remain high after an initial surge earlier in the war and contributed to higher energy costs for consumers.
As a result, gasoline prices have reached record highs, with the national average exceeding $4 per gallon every day in August, according to the AAA. Higher energy prices are fueling stubbornly high inflation, which has been weighing on household spending and consumer confidence.