US stock market indices started the trading session in the red following a renewal in military tensions between the US and Iran with regards to the Strait of Hormuz.
Minutes into the trading session, the Dow Jones Industrial Average was down 0.63% or 337.35 points to 53,222.6, while the S&P 500 saw a 0.38% decrease by 29.14 points to 7,682.62, the Nasdaq Composite declined by 0.32% or 83.29 points to 26,319.12.
According to the US military, its forces struck two Iranian launchers on Larak Island on Sunday after US forces stated that Islamic Revolutionary Guard Corps (IRGC) personnel were preparing to use rockets to deploy sea mines in the Strait of Hormuz.
Iran's army on Monday claimed that it launched a drone attack on the United Arab Emirates' (UAE) Al Minhad Air Base, saying that the strike targeted areas where US forces and helicopters were stationed, as retaliation.
The price of oil also saw an rise, with Brent crude trading at a 5.25% uptick at $90.64 per barrel at 7:00 p.m. IST. The US West Texas Intermediate was up 3.37% to $86.21 per barrel at 7:14 p.m. IST.
ALSO READ: US-Iran Tensions To Escalate? UAE's Al Minhad Air Base Attacked With Drones, Says IRGC
The West Asian tensions did not significantly hamper the markets' performance in the month of August as the Dow rose over 1% on a month to date basis, with the index set to see its fifth straight advance. The S&P 500 was up 2% and the Nasdaq Composite index increased by 3% in August, reaching their all-time highs.
The latter index was raised up by the S&P tech sector which was up 6% this month. With Nvidia increasing by 7%, and Microsoft as well as Micron Technology increasing by 9% and 14% respectively.
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