Traders work on the floor of the New York Stock Exchange during morning trading on April 17, 2026 in New York City.
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The seizure of an Iranian-flagged cargo ship escalated tensions between the United States and Iran over the weekend, sending stock futures lower Sunday night.
Dow Jones Industrial Average Futures It decreased by 452 points (0.9%). S&P500 futures Although it decreased by 0.8%, Nasdaq 100 futures It pulled back 0.6%.
President Donald Trump said Sunday that the United States had set fire to and captured an Iranian-flagged cargo ship in the Gulf of Oman. This follows Iran’s refusal to participate in the next round of peace talks in Pakistan planned by the United States.
In a post on Truth Social, President Trump said the Iranian ship “is under sanctions from the U.S. Treasury Department due to its history of illegal activity. We have full control of the ship and are verifying what is on board.”
President Trump also threatened to blow up all power plants and bridges in Iran unless Iran agrees to a deal with the United States. The ceasefire between the two countries is set to expire this week.
Oil prices soared in early trading. West Texas Intermediate futures jumped 8% to $90.54 a barrel. International Brent rose 6% to $96.50.
Wall Street is coming off a winning week, with the S&P 500 and Nasdaq Composite rising to record highs following the Iran-Lebanon ceasefire. At the time, Iran had declared the Strait of Hormuz reopened, but by Saturday, shipping traffic through the Strait of Hormuz’s main shipping lane was again restricted, with state media reporting that the United States had “failed to fulfill its obligations.”
President Trump reiterated that despite Iran’s declaration, the U.S. blockade of the strait will remain in place until Iran accedes to U.S. demands.
Last week, the S&P 500 rose 4.5% and the Nasdaq Composite rose 7.2%. The latter also recorded his 13th consecutive session win on Friday, tying a winning streak not seen since 1992.
“The Nasdaq ended the week highly overbought in the short term after 13 straight days of gains on hopes for a deal, and now the situation with Iran has become even more complicated, creating uncertainty as to when this conflict will end and when the Straits will fully reopen without fear of attack,” Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, told CNBC in an email.
“Assuming there is no change in the news again, the only question for Monday’s trading will be how large the market rebound will be,” he added.
