U.S. stock futures fell Monday after President Donald Trump announced a blockade of the Strait of Hormuz, as peace talks between the U.S. and Iran over the weekend ended without a deal.
Futures for the Dow Jones Industrials dumped 185 points, or 0.4%, to 47,944.
Futures for the S&P 500 sank 30.75 points, or 0.4%, to 6,824.50.
Futures for the NASDAQ capsized 106.75 points, or 0.4%. to 25,177.
“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump wrote on Truth Social.
“The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION.”
The breakdown of negotiations over the weekend in Islamabad reignited worries that the U.S.-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
West Texas Intermediate crude oil jumped 7.4% to $103.72 a barrel. International Brent popped 7.1% to $101.96.
U.S. Central Command said it will begin blocking all maritime traffic in and out of Iran’s ports at 10 a.m. ET Monday. The U.S. said it will not block vessels using the strait to get to non-Iranian ports.
Vice President J.D. Vance left Islamabad without a deal with his Iranian counterparts, citing their unwillingness to stop the pursuit of nuclear weapons.
But both sides appear farther apart than just that issue with Iran demanding control of the Strait of Hormuz, war reparations and the release of frozen assets. Pakistan officials said they would try to restart talks in the coming days.
Trump, who announced the naval blockade after talks broke down, is weighing resuming military strikes, the Wall Street Journal reported.
First-quarter earnings season unofficially kicks off this week. The nation’s largest banks will get it started, with Goldman Sachs slated to release results on Monday.
In Japan, the Nikkei 225 listed lower 0.7% Monday, while in Hong Kong, Hang Seng fell 0.9%
Oil prices accelerated $6.87 to $103.44 U.S. a barrel.
Gold prices waned $36.60 to $4,750.80 U.S an ounce.
