TLDR
- President Trump ordered a US Navy blockade of the Strait of Hormuz starting Monday at 10 a.m. ET
- Dow futures fell as much as 580 points before recovering slightly; S&P 500 and Nasdaq futures dropped around 0.5–0.7%
- Oil prices surged above $100 a barrel, with Brent crude rising as much as 9%
- Iran called the blockade “an act of piracy” and threatened to target Persian Gulf ports
- Bank earnings season kicks off Monday, led by Goldman Sachs
US stock futures fell sharply on Monday morning after President Donald Trump announced a US Navy blockade of the Strait of Hormuz, one of the world’s most important oil shipping routes.
Trump made the announcement on Truth Social, writing: “Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz.” The blockade was set to begin at 10 a.m. ET on Monday.
BREAKING: President Trump is looking at resuming "limited military strikes" in Iran in addition to the US blockade of the Strait of Hormuz, per WSJ.
Details include:
1. Trump could also resume a full-fledged bombing campaign, though officials said that was less likely
2. Trump…
— The Kobeissi Letter (@KobeissiLetter) April 12, 2026
The move came after US-Iran peace talks collapsed over the weekend in Islamabad. The breakdown ended a brief period of optimism that had helped drive markets to their best week of 2026.
Dow Jones Industrial Average futures dropped as much as 580 points before trimming losses to around 300 points, or roughly 0.7% lower. S&P 500 futures and Nasdaq 100 futures each fell around 0.5% to 0.7%.
Oil prices jumped sharply on the news. Brent crude rose as much as 9%, reaching near $104 a barrel, before pulling back slightly to trade above $101. West Texas Intermediate futures climbed over 8% to top $104 a barrel.
Iran responded quickly to Trump’s announcement, vowing to target all Persian Gulf ports if its own energy hubs came under threat. The Iranian government called the blockade “an act of piracy.”
Rising Oil Prices Stoke Inflation Fears
The surge in oil prices brought fresh concerns about inflation. Higher energy costs can push up prices across the economy, which could slow consumer spending and economic growth.
Gold futures slipped 0.7% to $4,756 an ounce. The US dollar rose 0.3% against a basket of major currencies. The yield on the 10-year Treasury note edged up one basis point to 4.33%.
The three major indexes had just closed their best weeks of 2026, driven by a fragile ceasefire that now appears to be under pressure. Analysts said markets were now trying to reassess stock valuations with no clear end to the Middle East conflict in sight.
“Anytime there is a repricing in markets, we see volatility,” said Clark Bellin, president of Bellwether Wealth.
Despite the losses, some analysts noted that futures had pulled back from their worst levels, suggesting investors were still holding out hope for a diplomatic outcome.
Bank Earnings Season Begins
Attention was also turning to the start of first quarter earnings season. Goldman Sachs was set to report results on Monday.
JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and Morgan Stanley were all scheduled to report later in the week. Netflix and PepsiCo were also due to post results.
The Strait of Hormuz is a narrow waterway between Oman and Iran. Around 20% of the world’s oil supply passes through it, making it a critical point in global energy markets.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
