Oil Prices Rise After Fighting Resumes in Strait of Hormuz; Major U.S. Stock Indexes Slip -- WSJ

By Caitlin McCabe

The conflict in the Middle East is back at the forefront for investors this morning, with renewed fighting in the Strait of Hormuz sending Brent crude futures back above $90 a barrel.

U.S. forces attacked two Iranian rocket launchers in the waterway Sunday, marking the first American strike in weeks and reviving fears that the region could slide back toward all-out conflict. Shortly after the strike, U.S. forces defended against missiles launched at Jordan.

The moves mark the latest bout of volatility for oil prices, which have swung sharply throughout August as hopes for a diplomatic resolution with Iran have waxed and waned. Even so, Brent futures aren't far from where they started the month, rising around 3%.

U.S. stocks are retreating, led by the Dow, which is down about 300 points. The three major benchmarks remain on course to finish the month solidly in the green. Treasury yields continue to move higher after jumping Friday in response to Fed Chairman Kevin Warsh's Jackson Hole remarks.

The calendar is relatively light this week as second-quarter earnings season winds down. The main event will be Friday's jobs report, which is expected to show that the economy added 50,000 jobs in August, compared with a loss of 23,000 the month before.

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(END) Dow Jones Newswires

August 31, 2026 12:23 ET (16:23 GMT)