US stock indexes closed lower on August 31, 2026, as oil prices surged by over 2% following renewed direct conflict between the US and Iran.
Despite the end-of-month decline, major indexes managed to post overall gains for August, though investor sentiment remains cautious due to geopolitical instability in West Asia.
Analysts warn that sustained high oil prices could increase inflationary pressure, potentially influencing the Federal Reserve's interest rate decisions in the coming quarter.