Oil prices rise and stocks fall after US hits Iranian sites in the Strait of Hormuz

Wall Street closed out August on a downbeat note Monday as stocks fell and the price of oil rose after the U.S. launched its first military action in a month against Iran.

The S&P 500 index fell 0.3%. The Dow Jones Industrial Average dropped 0.7% and the Nasdaq composite slipped 0.1%.

August had no shortage of turbulence for the market, but the S&P 500 and Nasdaq each posted a gain for the month after losing ground in July and June. The Dow, meanwhile, managed its fifth-straight monthly gain.

Monday's losses were broad, with nearly every sector within the benchmark S&P 500 finishing in the red. Energy stocks, though, notched gains. Exxon Mobil rose 2.7% and Chevron rose 2.1%.

On the losing side, Edison International slumped 23.1% and PG&E fell 20.1% for the two steepest declines. That followed reports about potential California wildfire legislation that would allow insurers to sue utilities over related claims.

Amazon fell 2.5% after The Wall Street Journal reported that the Federal Trade Commission and more than 20 states are preparing to sue the online retail giant over claims the company manipulated prices on its platform.

The U.S. war with Iran remained a key focus for Wall Street. U.S. forces struck Iranian rocket launchers on the Strait of Hormuz on Sunday. Meanwhile, the United Arab Emirates said it intercepted an Iranian drone over its waters on Monday.

The aggressive actions follow a lull in activity in the U.S. war with Iran, which has lasted more than six months .