(NEW YORK) — Stocks dipped and oil prices rose in early trading on Monday as tensions mounted in the Strait of Hormuz, putting pressure on the ceasefire between the U.S and Iran a day before it’s set to expire.
The Dow Jones Industrial Average fell 25 points, or 0.07%, while the S&P 500 dropped 0.1%. The tech-heavy Nasdaq declined 0.1%.
U.S. Marines seized an Iran-flagged container ship in the Gulf of Oman on Sunday, according to CENTOM, just a day after two Indian ships came under fire in the Strait of Hormuz.
A potential second round of peace talks between the U.S. and Iran remained in doubt on Monday. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Monday that Iran has not yet made any decision regarding additional talks.
West Texas Intermediate futures, the benchmark index for U.S. oil prices, climbed more than 4% on Monday, registering at about $87 a barrel.
The escalating tensions appeared to reverse a brief thaw on Friday, when a senior Iranian official declared the strait “completely open” for tanker traffic. Within minutes, President Donald Trump celebrated the announcement as a major breakthrough.
The glimmer of relief for the critical waterway sent stock prices soaring and oil prices plummeting on Friday.
This is a developing story. Please check back for updates.
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