Stocks fall, oil surges after US seizes cargo vessel and Tehran wavers on peace talks
US Stocks Fall and Oil Prices Surge Amid Rising Tensions with Iran
US stocks took a hit and oil prices surged on Monday morning as tensions over the Iran war escalated once again. President Trump announced that the US Navy had seized an Iranian cargo vessel, while Tehran sent conflicting signals about resuming talks.
By 9:45 a.m. Eastern Time, the S&P 500 and Nasdaq had dropped 0.2% and 0.4% respectively, while the Dow Jones Industrial Average remained relatively flat.
Brent crude oil prices saw a 3.9% increase to $93.89, and West Texas Intermediate rose by 4.5% to $86.29. Despite a slight dip, national average gasoline prices stood at $4.04 per gallon, still more than 30% higher than pre-strike prices before the US and Israel launched attacks on Iran in February.
Concerns about escalating tensions in the Middle East were raised after Trump’s announcement on Sunday that the US Navy had damaged an Iranian-flagged cargo ship attempting to bypass the US blockade of the Strait of Hormuz.
Trump stated in a Truth Social post, “The Iranian ship is under US Treasury Sanctions because of their prior history of illegal activity. We have full custody of the ship, and are seeing what’s on board.”
In a previous post on Sunday, Trump accused Iran of firing at foreign vessels in the strait, labeling it “A Total Violation of our Ceasefire Agreement!”
Despite Iran’s refusal to participate in peace talks in Pakistan, Trump reiterated his threat to target the nation’s power plants and bridges. However, Iran’s President Masoud Pezeshkian emphasized that continuing the conflict “benefits no one.” Trump expressed willingness to meet with Iranian leaders in person.
“We’re supposed to have the talks,” Trump stated. “So I would assume at this point nobody’s playing games.”
A temporary ceasefire between the US and Iran is set to expire on Wednesday if no peace deal is reached.
Last week, Wall Street saw significant gains, with the S&P 500 and Nasdaq reaching new all-time highs following a ceasefire between Iran and Lebanon.
Iran announced last week that the Strait of Hormuz, a critical maritime route for 20% of the world’s oil, had been fully reopened, although traffic was reportedly still limited.
