NEW YORK (AP) — Oil prices moved higher Monday following renewed tensions in the Middle East, while U.S. stock markets declined as investors weighed weakness in technology shares and prepared for a busy week of corporate earnings reports.
Brent crude, the international benchmark for oil, climbed about 4.5% to $79.41 per barrel after developments involving the Strait of Hormuz, a key global shipping route for oil exports. The increase came after the United States and Iran each asserted control over activity in the area, where recent military actions have disrupted tanker traffic.
President Donald Trump announced he is reinstating a blockade on Iranian ships in the Strait of Hormuz and proposed a 20% fee on cargo moving through the waterway, saying the revenue would help offset U.S. costs for providing security in the region.
Despite Monday’s gains, Brent crude remains well below the highs reached during previous conflicts.
On Wall Street, major indexes traded lower late Monday morning. The S&P 500 slipped 0.4%, the Dow Jones Industrial Average fell about 91 points, or 0.2%, and the Nasdaq Composite dropped 0.9%.
Technology stocks, particularly semiconductor companies that have benefited from increased investment in artificial intelligence, were among the biggest decliners.
Micron Technology fell 4.4%, trimming some of its strong gains from earlier this year. Nvidia, the largest company in the S&P 500 by market value, declined 1.6%.
Investors continue to evaluate whether rapid growth in AI-related stocks can be supported by long-term demand and corporate earnings.
Markets in Asia also posted losses. South Korea’s Kospi index dropped 8.9%, while SK Hynix shares fell 15.4%, marking the company’s largest one-day decline since it began trading in 1997. The move came after the chipmaker’s U.S. shares debuted Friday.
Taiwan Semiconductor Manufacturing Co. reported June revenue increased nearly 68% compared to a year earlier, although its U.S.-listed shares edged lower Monday.
Investors are also turning their attention to the start of second-quarter earnings season. Several of the nation’s largest banks—including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo—are scheduled to report quarterly results Tuesday.
According to FactSet, analysts expect companies in the S&P 500 to report year-over-year earnings growth of roughly 23.6% for the quarter. Strong earnings could help support stock valuations following a year of significant market gains.
In the bond market, the yield on the 10-year U.S. Treasury note rose to 4.60% from 4.56% on Friday. Higher oil prices have renewed concerns that inflation could remain elevated, potentially influencing future interest rate decisions by the Federal Reserve.
European markets were mixed Monday, while major indexes in Asia finished lower, including declines of 2.1% in Shanghai and 1.9% in Japan’s Nikkei 225.
