Traders work on the floor of the New York Stock Exchange (NYSE) before the closing bell in New York City on April 8, 2026.
Charly Triballeau | AFP | Getty Images
U.S. stock futures tumbled early 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.
Dow Jones Industrial Average futures dropped by 517 points, or 1.1%. S&P 500 futures lost 1.1% and Nasdaq 100 futures shed 1.2%.
“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.
WTI crude oil jumped 7.9% to $104.19 a barrel as trading began Sunday.
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 JD 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, citing officials familiar with the situation.
“The new blockade statement is an overt signal to equity markets that the Iranian conflict remains uncertain, yet traders are viewing this development as negotiation tactic versus an actual policy implementation, or as a long-term solution for the Strait of Hormuz,” said Jeff Kilburg, CEO of KKM Financial.
Kilburg said it’s possible more buyers come in before the market opens Monday.
Hopes for a swift end to the war helped all three major benchmarks post their best week since November, following the announcement of a two-week ceasefire between the U.S. and Iran. The S&P 500 rallied 3.6% last week, while the Nasdaq jumped about 4.7%. The Dow gained 3%.
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. Citigroup, Wells Fargo, JPMorgan Chase, Morgan Stanley and Bank of America are all on the docket later this week.
Asia markets decline after U.S. moves to blockade Iran ports led to oil price surge
Asia-Pacific markets traded lower Monday, as investors mull over a U.S. naval blockade on Iran’s ports, following talks between Washington and Tehran that failed to yield an agreement to end the Middle East conflict.
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.
India’s Nifty 50 was the worst-performing major Asian index, declining nearly 2%.
Japan’s Nikkei 225 fell 1.09%, while the Topix declined 0.67%. South Korea’s Kospi declined 1.26%, while the small-cap Kosdaq rose 0.26% in choppy trade. In Australia, the S&P/ASX 200 was 0.53% lower.
Mainland China’s CSI300 index inched 0.12% lower, while Hong Kong’s Hang Seng index extended early losses and was 1.22% lower.
Crude oil prices surged on Sunday after the talks ended without an agreement and the U.S. moved toward a blockade of Iranian port traffic. The West Texas Intermediate jumped 8.54% to $104.82 per barrel as of 11:45 p.m. ET. Brent crude gained 7.27% to $102.51 per barrel.
— Justina Lee
Asia markets fall as Trump’s move to blockade Hormuz Strait sends oil soaring
Oil rallies as U.S. Navy gets ready to blockade Iranian ports
Crude oil prices surged on Sunday, as the U.S. Navy prepares to impose a blockade on Iran’s ports after peace talks failed over the weekend.
U.S. crude oil futures for May delivery jumped 8% to $104.35 per barrel by 6:21 p.m. ET. International benchmark Brent for June delivery advanced 7% to $101.97.
U.S. Central Command said Sunday the military will blockade all maritime traffic entering and exiting Iranian ports on Monday at 10 a.m. ET. It added that the U.S. will not impede vessels transiting to and from non-Iranian ports.
Oil surges
— Spencer Kimball
Trump weighs limited strikes on Iran, Wall Street Journal reports
U.S. President Donald Trump and his advisers are considering resuming limited military strikes in Iran, following a breakdown in negotiations with the country, according to the Wall Street Journal, citing officials and people familiar with the situation.
The president was reportedly weighing the option on Sunday. He could also ramp up his bombing campaign to full force, though officials said that was less likely so as to avoid destabilizing the region further, the report said. He could also pursue a temporary blockade as he pressures allies to take the lead in military escort through the strait.
— Sarah Min
Trump says U.S. will blockade Strait of Hormuz after Iran peace talks fail
President Donald Trump on Sunday said the U.S. will blockade the Strait of Hormuz after talks held in Pakistan to end the Iran war hit the skids.
“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 said in a post to his social media platform 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.”
— Garrett Downs
Stock futures open lower
Stock futures opened lower on Sunday night.
Dow Jones Industrial Average futures dropped by 517 points, or 1.1%. S&P 500 futures lost 1.1% and Nasdaq 100 futures shed 1.2%.
— Sarah Min