Late Sunday, U.S. stock futures slid sharply while oil prices surged after escalating tensions between Washington and Tehran raised fears of a major global energy supply disruption.
Markets Slide As Oil Prices Surge On Supply Fears
Dow futures fell 479.00 points, or 1.00%, to 47,650.00, while S&P 500 futures declined 67.25 points, or 0.98%, to 6,788.00 and Nasdaq 100 futures slipped 280.50 points, or 1.11% as of 8:31 p.m. EDT.
In commodities, WTI crude rose 8.29% to $104.58 per barrel, while Brent crude gained 7.97% to $102.79 per barrel.
RBOB gasoline futures climbed 4.84% to $3.1844 per gallon and ULSD heating oil futures advanced 8.89% to $4.0959 per gallon.
Natural gas futures rose 1.81% to $2.696 per MMBtu.
Meanwhile, the U.S. dollar index was at 99.043, up 0.35%.
Asian markets were lower, with Japan’s Nikkei 225 falling 0.68% to 56,536.64, while South Korea’s KOSPI declined 1.30% to 5,782.72.
Trump Escalates Pressure With Blockade Threat
Earlier on Sunday, Donald Trump said that the U.S. Navy would begin efforts to block ships entering or leaving the Strait of Hormuz.
“Effective immediately, the United States Navy… will begin the process of blockading any and all ships” transiting the strait, Trump said on Truth Social.
The U.S. Central Command later confirmed, saying it will begin blocking all maritime traffic to and from Iranian ports starting at 10 a.m. ET on Monday. It added that vessels traveling to or from non-Iranian ports will not be affected.
Failed Talks Add To Uncertainty
Diplomatic efforts to end the conflict collapsed after high-level talks in Pakistan failed to produce an agreement.
Vice President JD Vance said negotiations broke down over Iran’s unwillingness to commit to abandoning nuclear weapons development.
Iranian Foreign Minister Abbas Araghchi accused Washington of shifting demands at the last minute. “Good will begets good will. Enmity begets enmity,” he wrote on X.
It remains unclear whether Trump will resume airstrikes on Iran.
Strait Of Hormuz Disruption Raises Global Alarm
The Strait of Hormuz handles roughly one-fifth of global oil flows, making any disruption a major threat to energy markets.
Tanker traffic has already declined sharply amid security concerns.
Three supertankers completed the transit on Saturday, according to LSEG data, each capable of carrying up to two million barrels of oil, CNBC reported.
However, overall traffic remains far below prewar levels when more than 100 vessels passed through daily.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Below the Sky via Shutterstock
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