US Stocks Drop as Iran Conflict Sends Oil Prices Soaring

US stocks fell on Monday as tensions between the US and Iran escalated, pushing oil prices higher and inflation concerns to the forefront. The Dow Jones Industrial Average dropped 380.22 points, or 0.71%, to 53,179.77.

The renewed hostilities between the two countries increased worries about oil supplies, with West Texas Intermediate crude rising nearly 3% to $85.76 a barrel and Brent crude futures gaining almost 3% to $90.49.

Energy stocks benefited from the rise in crude prices, but investors remained focused on whether sustained energy costs could contribute to broader inflation and affect the Federal Reserve's interest-rate decisions.