U.S. stocks edged lower on Monday as hopes for an imminent deal to reopen the Strait of Hormuz faded, with the Dow down 0.3%, the S&P 500 down 0.1%, and the Nasdaq down 0.4%, according to livemint.com. Meanwhile, U.S. crude oil prices jumped about 5% to settle at $82.13 a barrel amid rising geopolitical tensions.
The market decline followed news that Iran would not reopen the Strait of Hormuz, a critical oil shipping route, dampening expectations for easing energy supply concerns. Intel shares also fell after launching a $15 billion share sale. U.S. President Donald Trump demanded compensation from Iran for casualties in wars and protests, further escalating tensions, livemint.com reported.
The surge in oil prices has fueled inflation worries and increased speculation about interest rate hikes by central banks. The Strait of Hormuz is a vital chokepoint for global energy flows, and disruptions there can significantly impact oil markets. The market reaction reflects concerns about sustained higher energy costs and their broader economic effects.
The Dow Jones Industrial Average closed at 53,937.14, the S&P 500 at 7,753.90, and the Nasdaq Composite at 26,638.35 on Monday, as per livemint.com. The next key market data release will include fresh inflation readings expected later this week.