Traders work on the floor of the New York Stock Exchange (NYSE) before the closing bell on April 8, 2026, in New York City.
Charlie Tribalew | AFP | Getty Images
U.S. stock futures fell Sunday night after President Donald Trump announced a closure of the Strait of Hormuz after last weekend’s peace talks between the U.S. and Iran ended without a deal.
Dow Jones Industrial Average futures fell 517 points, or 1.1%. S&P 500 futures fell 1.1% and Nasdaq 100 futures fell 1.2%.
“Effective immediately, the United States Navy, the world’s greatest navy, will begin the process of blockading any vessels attempting to enter or exit the Strait of Hormuz,” Trump told Truth Social. “The blockade will begin soon. Other countries will also be involved in this blockade. Iran cannot be allowed to profit from this illegal act of extortion.”
The collapse of negotiations in Islamabad over the weekend has reignited fears that the war between the United States and Iran could last longer than feared, leading to higher oil prices and continuing to strain economies around the world.
At the start of Sunday trading, WTI crude oil rose 7.9% to $104.19 a barrel.
U.S. Central Command announced it would begin blocking all maritime traffic in and out of Iranian ports starting at 10 a.m. Eastern Time on Monday. The United States said it would not block ships using the strait to reach ports other than Iran.
Vice President J.D. Vance left Islamabad without an agreement with Iran, citing Iran’s unwillingness to stop pursuing nuclear weapons. However, the gap between the two countries appears to be even greater than just the issue of Iran, which demands sea control of the Strait of Hormuz, war reparations, and the release of frozen assets. Pakistani officials said they would try to restart talks within the next few days.
The Wall Street Journal reported, citing officials familiar with the situation, that President Trump, who announced a naval blockade after talks broke down, is considering resuming military strikes.
“The new blockade statement is a clear sign to the stock market that the Iran conflict remains uncertain, but traders see this development as a negotiation tactic versus actual policy implementation or a long-term solution to the Strait of Hormuz,” said Jeff Kilberg, CEO of KKM Financial.
Kilberg said there could be more buyers before the market opens on Monday.
All three major indexes posted their best week since November, following the announcement of a two-week ceasefire between the United States and Iran and hopes for a quick end to the war. Last week, the S&P 500 rose 3.6% and the Nasdaq rose about 4.7%. The Dow rose 3%.
First quarter earnings season unofficially begins this week. The nation’s largest banks have begun the effort, with Goldman Sachs scheduled to report results on Monday. Citigroup, Wells Fargo, JPMorgan Chase, Morgan Stanley and Bank of America are all expected to register later this week.
