Wall Street’s record run slows as oil prices move higher

The U.S. stock market’s record-setting rally lost momentum on Monday as uncertainty grew over the weekend about what comes next in the Iran war. At the same time, oil prices moved higher, adding another layer of pressure to already fragile markets.

The S&P 500 was basically flat after reaching a new all-time high, supported by strong U.S. corporate earnings and hopes that the United States and Iran could avoid the worst economic outcome from the war. The Dow Jones Industrial Average slipped 7 points, or less than 0.1%, while the Nasdaq was down 0.2% after setting its own record.

Oil prices rise as the Strait of Hormuz stays effectively closed

The stronger move was in the oil market, where prices rose about 2% as tankers still found the Strait of Hormuz effectively closed. That is keeping crude trapped in the Middle East and away from customers around the world, including Iranian crude that is being blocked by the U.S. Navy.

Brent crude for June delivery rose 2.2% to $107.60 a barrel. July Brent, which is where more trading is taking place, climbed 2.3% to $101.38 a barrel.

• Brent was around $70 a barrel before the war.
• Prices have briefly moved above $119 more than once when war fears intensified.
• Oil traders remain focused on shipping risk and the limited flow through the strait.

Trump’s stance keeps pressure on markets

Iran has offered to reopen the strait if the United States ends its blockade, while suggesting that talks on its nuclear program could come later. But President Donald Trump appears unlikely to accept that proposal, which was passed to the Americans by Pakistan.

Over the weekend, Trump told U.S. envoys not to go to Pakistan, which has been playing a key mediating role. By saying the Iranians could call Washington with any proposal, Trump signaled that he may want to keep pressure on Iran through the blockade.

Oil prices and earnings are pulling the market in different directions

Even with the geopolitical strain, many major U.S. companies are still posting stronger-than-expected earnings for early 2026. That has helped keep the broader market from falling harder and has pushed the S&P 500 up nearly 13% since its late-March low.

Verizon Communications joined that list and rose 4.1% after saying it added more postpaid phone customers than it lost for the first time since 2013 in a first quarter. The company also lifted its forecast for profit growth this year, even though revenue missed analyst expectations.

Domino’s Pizza moved the other way and fell 9.8% after reporting weaker profit and revenue than analysts expected.

Big earnings and the Fed keep traders on edge

The market still has several major earnings reports ahead this week. Alphabet, Amazon, Meta Platforms and Microsoft are all scheduled to report on Wednesday, while Apple will report on Thursday.

The bond market was steadier. Treasury yields held near recent levels even as oil prices rose. The 10-year Treasury note yield stayed at 4.31%, where it was late Friday.

The Federal Reserve is also set to announce its latest interest-rate decision on Wednesday, and traders largely expect no change. Lower rates would support the economy, but they could also add to inflation at a time when oil prices are swinging and tariffs are threatening to lift prices further.

Wednesday is likely to be the final meeting with Chair Jerome Powell leading the Fed. His term as chair ends next month, and Trump has already named Kevin Warsh as his nominee to replace him.

Global markets stay mixed

Markets overseas were mixed. Europe was uneven after a stronger session in Asia, while South Korea’s Kospi jumped 2.2% and Japan’s Nikkei 225 gained 1.4%. Those moves showed that investors remain sensitive to both earnings momentum and geopolitical risk.

The current market picture is a split one: stocks are still supported by corporate strength, but oil prices and Iran-related uncertainty are keeping a lid on confidence.

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