US Strike on Iranian Rocket Launchers Sends Oil Prices Soaring
The US military launched its first strike in a month against Iran on Sunday, targeting Iranian rocket launchers on the Strait of Hormuz. The move has sent oil prices surging and caused stocks to fall on Wall Street.
The price of Brent crude rose 3.2% to $90.91 per barrel on Monday, while the national average for gasoline in August reached a record high of over $4 per gallon every day in August. This is due to the ongoing war with Iran, which has curtailed traffic in the Strait of Hormuz and made oil shipments more expensive.
The losses on Wall Street were broad, with nearly every sector within the S&P 500 losing ground. Energy stocks were a notable exception, with Exxon Mobil rising 2.9% and Chevron up 3%. The Dow Jones Industrial Average fell 348 points, or 0.7%, while the Nasdaq dropped 0.3%.
The job market remains resilient, but is showing signs of weakening. The US reports August jobs data later this week, which could provide insight into the impact of higher energy prices on inflation and interest rates.