US-Iran Conflict Sparks Global Market Volatility
US military action against Iran sent shockwaves through global markets on Monday, as stocks fell and oil prices surged. The S&P 500 index dropped 0.3%, while the Dow Jones Industrial Average plummeted 0.7%. Energy stocks bucked the trend, however, with Exxon Mobil rising 2.7% and Chevron climbing 2.1%.
The US war with Iran has been ongoing for over six months, causing disruptions to oil shipments through the Strait of Hormuz. The price of Brent crude rose 2.7% on Monday, settling at $90.49 per barrel. This increase in oil prices has contributed to higher energy costs and inflation, making gasoline more expensive than ever before.
The Federal Reserve is facing a complex decision regarding interest rates, with Wall Street expecting a rate hike at its next meeting. The Fed's next inflation update on September 11 will be closely watched, as it may influence the central bank's policy.