NEW YORK — Oil prices hovered just under $100 per barrel on Monday following the failure of 21-hour ceasefire negotiations between the United States and Iran.
Despite the breakdown in talks, U.S. stocks remained steady, signaling that Wall Street investors still see a path to avoiding a global economic crisis.
Crude prices rose more than 4% earlier in the session, though Brent crude eventually pulled back from a morning peak of nearly $104 to settle around $99.35 per barrel.
Following the weekend's failed negotiations, President Donald Trump announced a blockade of the Strait of Hormuz to restrict Iran's oil revenue.
Iran responded with threats against all ports in the Persian Gulf and the Gulf of Oman.
“Security in the Persian Gulf and the Sea of Oman is either for everyone or for NO ONE,” the Islamic Republic of Iran Broadcasting reported Monday.
Market reactions
Analysts suggest the market is finding some stability through ongoing dialogue.
“Markets are taking some encouragement from the fact that the two sides are talking and that the broader ceasefire seems to be holding, for now,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.
However, the specific impact of the blockade remains uncertain. Brian Jacobsen, chief economic strategist at Annex Wealth Management, noted that “not all blockades are created the same.”
On Wall Street, the S&P 500 rose 0.5% in afternoon trading, while the Nasdaq composite gained 0.7%. The Dow Jones Industrial Average edged up 32 points, or 0.1%.
Corporate earnings are providing a secondary cushion for stocks. Goldman Sachs reported a first-quarter profit of $5.63 billion, exceeding investor expectations, even as its stock fell 2.3% due to lower revenue in certain trading sectors.
In the technology sector, Sandisk jumped 8.7% following news of its inclusion in the Nasdaq 100 index. Oracle also saw a significant gain of 11.2%.
In contrast, international markets faced downward pressure. Hong Kong’s Hang Seng and South Korea’s Kospi both dropped 0.9%.
“The outcome of the talks was not really what people were hoping for, that’s for certain,” said Neil Newman, Managing Director at Astris Advisory Japan.
Treasury yields remained steady, with the 10-year yield holding at 4.31%.
