Stocks wobble as Iran tensions spike oil, but August still delivers solid monthly gains

U.S. stocks edged lower Monday after the U.S. attacked Iran, sending oil higher and stoking inflation worries, with the Dow down about 0.7%, the S&P 500 off 0.3%, and the Nasdaq around 0.1% lower. Despite the slide, all three indexes closed August with gains (S&P up roughly 2.5%, Nasdaq up over 3%, Dow about 1%). Brent crude climbed above $88 as tensions in the Strait of Hormuz persisted, and traders priced in roughly a 60–62% chance of a 25 basis-point rate hike at the Fed’s September meeting after hawkish comments from officials. Investors await Friday’s jobs report for fresh guidance on monetary policy.