Oil prices rose sharply after the U.S. launched military strikes against Iranian rocket launchers near the Strait of Hormuz, pushing Brent crude to $90.91 per barrel on Monday. The S&P 500 index fell 0.4%, with the Dow Jones dropping 348 points and the Nasdaq down 0.3%, reflecting broad market losses amid geopolitical tensions, according to fortune.com.
The U.S. military action marked the first strike in a month against Iran, targeting rocket launchers on the strategic Strait of Hormuz, a key passage for about 20% of global oil shipments. The United Arab Emirates also intercepted an Iranian drone over its waters on Monday. Energy stocks bucked the broader market decline, with Exxon Mobil rising 2.9% and Chevron up 3%, fortune.com reported.
The renewed conflict has intensified concerns over oil supply disruptions in a region critical to global energy markets. Oil prices had surged earlier in the six-month-long U.S.-Iran war and remain elevated, contributing to higher gasoline and shipping costs worldwide. The ongoing instability in the Strait of Hormuz underscores the vulnerability of oil shipments and its impact on global markets, as detailed by fortune.com.
GameStop shares gained 4.2% after releasing a positive second-quarter earnings outlook, while Aon’s stock fell 5.8% following its $17 billion acquisition of USI Insurance Services from KKR, according to fortune.com. The Dow, S&P 500, and Nasdaq indexes reflected the market's reaction to geopolitical risks and corporate developments on Monday.