US Stocks Open Lower Amid Escalating Iran Tensions

The US stock market opened lower on Monday due to escalating tensions between the US and Iran. The two sides exchanged fire for the first time in about a month, prompting concerns over oil prices and inflation.

Brent crude futures for November delivery were up 3.2% at around $90.91 a barrel, while West Texas Intermediate crude futures for October rose 3.5% to $86.28 a barrel. The Strait of Hormuz remains a key focus for the oil market, with around 6 million to 8 million barrels of crude a day passing through the waterway.

The rise in oil prices has also revived concerns over inflation and interest rates. Markets have increased their expectations for a rate hike at the Fed's next meeting, with swaps now reflecting around a 60% probability of a hike, up from roughly 34% before Federal Reserve Chair Kevin Warsh's comments at Jackson Hole last week.

The Labor Department's monthly jobs report is due on Friday and will provide another key data point for markets ahead of the Federal Reserve's September meeting. Meanwhile, spot gold was little changed, while Bitcoin was down 0.4% at around $78,301.