U.S. stocks edged lower Monday while oil prices surged on renewed Middle East tensions, as fighting in the Strait of Hormuz prompted U.S. forces to strike Iranian rocket launchers. West Texas Intermediate crude rose 2.8% to $85.76 a barrel, while Brent crude closed above $90, up 1.3%. Energy stocks gained 2.1%, with SLB up 4.8% and Devon Energy adding 2.4%.

The Dow Jones fell 0.7%, or 374 points, as the S&P 500 slipped 0.3% and the Nasdaq Composite lost 0.1%. Treasury yields rose to 4.757% after Federal Reserve Chairman Kevin Warsh’s Jackson Hole remarks. Despite the decline, major indexes posted August gains, with the Dow hitting its best five-month run since November 2024.

Software stocks outperformed, led by Moderna’s post-FDA approval surge. Apple dipped 0.9% on Tim Cook’s final day as CEO, though the stock has returned over 2,200% under his tenure. Amazon fell 2.5% after the FTC filed an antitrust lawsuit alleging deceptive pricing practices.

Treasury Secretary Scott Bessent cited supply shocks as a reason to hold rates steady. Peter Cardillo noted ample investor concerns amid geopolitical uncertainty.