US equity markets slid into the close on August 31 after President Donald Trump vowed to “hit them hard” in response to Iranian missile fire directed at American military facilities in Jordan. The threat of an expanded conflict near the world’s most important oil chokepoint did exactly what you’d expect: crude prices ripped higher and everything else turned red.
Dow futures dropped between 0.12% and 0.7% as the session wore on, while the S&P 500 and Nasdaq followed suit. The only corner of the market having a good day was energy, where companies like Exxon Mobil and Chevron climbed roughly 3% on the back of surging crude prices.
What happened in the Strait of Hormuz
The latest chapter in the US-Iran saga started on August 30, when American forces struck Iranian rocket launchers stationed on Larak Island, a small but strategically positioned piece of land near the Strait of Hormuz. It was the first acknowledged US assault on Iranian positions in about a month, breaking what had been a tense but relatively quiet stretch.
Iran responded with ballistic missiles aimed at US bases in Jordan. All were intercepted, and no casualties were reported on either side.
