By 03:28 ET (07:18 GMT) on Monday, Dow futures were down 239 points, or 0.5%, S&P 500 futures had slipped 40 points, or 0.6%, and Nasdaq 100 futures had declined 168 points, or 0.7%. European and Asian stocks wobbled, oil prices jumped and the U.S. dollar firmed.<\/p>\n
The moves followed mixed closes on Wall Street on Friday, as traders braced for weekend negotiations between Washington and Tehran in Pakistan. Those talks, lasting 21 hours, ended without an agreement to solidify a temporary two-week ceasefire announced last week. U.S. Vice President JD Vance said Iran had refused to accept U.S. demands to refrain from developing a nuclear weapon, while Pakistan urged both sides to uphold the ceasefire.<\/p>\n
U.S. inflation data also weighed on sentiment, with consumer price gains in March accelerating, driven largely by higher gasoline costs linked to a war-induced energy shock. Oil prices have surged since the Iran conflict began in late February, amid an effective closure of tanker traffic through the Strait of Hormuz, a key route for roughly one-fifth of the world\u2019s oil.<\/p>\n
On Sunday, President Trump announced that the U.S. Navy would implement an immediate blockade to prevent ships from entering or exiting the Strait of Hormuz, warning that vessels paying an effective toll to Tehran would not have \u201csafe passage on the high seas.\u201d A subsequent Pentagon statement clarified that ships entering or departing Iranian ports or coastal areas would be blocked, while other vessels would be allowed to transit the strait.<\/p>\n
Brent crude futures were last up 6.7% at $101.65 a barrel, and U.S. West Texas Intermediate futures had risen 7.1% to $103.42 a barrel. Analysts at Pepperstone described the market response as \u201crelatively contained,\u201d characterizing the blockade announcement as largely a negotiating move.<\/p>\n
Oil had briefly fallen below $100 a barrel after last week\u2019s ceasefire announcement, which followed an earlier threat by Trump to destroy all of Iranian \u201ccivilization\u201d if the strait were not reopened. Prices, however, have remained well above pre-war levels.<\/p>\n
Goldman Sachs is scheduled to report quarterly results before the U.S. market open on Monday, kicking off a week of major Wall Street bank earnings that will also feature JPMorgan Chase, Wells Fargo, Citigroup, Bank of America and Morgan Stanley. Goldman\u2019s shares are up about 3% year-to-date, supported by increased trading activity tied to concerns over disruptions from new artificial intelligence tools and by revenue growth in investment banking.<\/p>\n
The Iran conflict may feature prominently in Goldman\u2019s outlook. Market volatility stemming from Middle East developments can support trading revenues, but higher commodity prices may discourage companies from pursuing costly transactions such as mergers and acquisitions, potentially weighing on advisory fees.<\/p>\n
In Europe, LVMH is set to publish first-quarter sales, with the Iran war expected to be a focus for guidance. Reuters has reported that luxury sales have fallen in destinations such as Dubai and Abu Dhabi amid the conflict. At Dubai\u2019s Mall of the Emirates, luxury brand sales dropped by as much as 50% in March, while traffic at Dubai Mall fell by a similar amount; sales at Abu Dhabi\u2019s Galleria mall were down about 10% across the board. Analysts cited by Reuters noted that while the Middle East is a relatively small market for LVMH, the impact on profits, reported on a half-year basis, could be more significant than on quarterly sales.<\/p>\n
Why are U.S. stock futures lower today?<\/strong> How has the Strait of Hormuz situation affected oil prices?<\/strong> What is significant about Goldman Sachs\u2019 upcoming earnings?<\/strong> How is the Iran conflict affecting LVMH and the luxury sector?<\/strong>
U.S. stock futures are lower as investors react to President Trump\u2019s threat of an immediate U.S. Navy blockade of the Strait of Hormuz, stalled U.S.-Iran negotiations, and higher oil prices, alongside recent data showing faster consumer price gains.<\/p>\n
The conflict in Iran and the threat of a U.S. blockade of the Strait of Hormuz, a key route for about one-fifth of global oil supply, have pushed Brent and WTI crude futures back above $100 a barrel, with gains of 6.7% and 7.1% respectively on Monday.<\/p>\n
Goldman Sachs\u2019 report will launch the U.S. bank earnings season and may highlight how the Iran conflict and higher commodity prices are influencing trading activity, investment banking revenues, and potential merger and acquisition advisory fees.<\/p>\n
According to Reuters, luxury sales for LVMH and peers have declined sharply in Middle Eastern destinations such as Dubai and Abu Dhabi during the conflict, with some malls seeing luxury sales down by up to 50% in March, which may have a larger impact on profits than on first-quarter sales.<\/p>\n