West Texas Intermediate

Stock futures slipped in overnight trading Sunday as stalled Iran peace talks and a fresh escalation in the Strait of Hormuz pushed oil prices higher, keeping geopolitical tensions front and center heading into a pivotal week. Futures tied to the Dow Jones Industrial Average fell 0.2%, or 130 points. S&P 500 futures declined 0.3%, whereas Nasdaq 100 futures slipped 0.3%.

The moves came after President Donald Trump scrapped plans to send U.S. Special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran, noting the negotiations could happen by phone. “Too much time wasted on traveling, too much work!” the president wrote in a post on Truth Social. “Nobody knows who is in charge, including them. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!” Iran’s Foreign Ministry spokesman Esmaeil Baqaei said no meeting between Tehran and Washington is currently planned.

Tensions escalated near the Strait of Hormuz after Iran’s Islamic Revolutionary Guard Corps boarded two container ships near the vital shipping lane, a key artery for global crude flows. West Texas Intermediate futures rose about 2% to above $96 a barrel, while international benchmark Brent oil futures rose about 2% to top $107 per barrel. Adam Crisafulli of Vital Knowledge called the impact “a modest negative” but said the conflict remains on a path of de-escalation.

Markets brace for a week defined by tech earnings and Federal Reserve policy

On the corporate front, five of the “Magnificent Seven” companies are set to report results in the final week of April, raising the stakes for a market already priced for strong growth. Attention will also turn to the Federal Reserve’s policy decision on Wednesday, which could mark Jerome Powell’s final meeting as chair before Kevin Warsh is expected to capture over in May. The Department of Justice decided to drop its criminal probe into Powell on Friday, causing Sen. Thom Tillis to end his block of Warsh’s confirmation.

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For more on this story, see Oil Prices Fall as U.S.-Iran Talks Stall and Hormuz Shipping Restrictions Persist.

The S&P 500 and Nasdaq Composite ended last week at fresh all-time highs, extending a powerful rally despite tensions in the Middle East and doubts about record artificial intelligence spending. April is shaping up to be a strong rebound month for equities. The S&P 500 is up more than 9%, while the Nasdaq has surged over 15%. The blue-chip Dow has gained more than 6% month to date.

Oil prices climb as Hormuz disruptions threaten global supply

Global tensions intensified after stalled efforts to revive Iran-related talks failed to open the Strait of Hormuz, as global oil supply restrictions continue to push up consumer prices across a wide-range of industries. Crude prices moved higher, with Brent and West Texas Intermediate futures climbing around 2% each to trade above $100 and $96 a barrel, respectively. The Strait of Hormuz remains a critical chokepoint, with about 20% of global oil supply passing through the waterway.

Last time a similar escalation occurred in early 2024, Brent crude spiked to $92 a barrel before easing as diplomatic channels reopened. This week’s rise comes as markets weigh the risk of prolonged disruption against the backdrop of already-elevated inflation pressures.

Key context The Magnificent Seven — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla — account for over 30% of the S&P 500’s weight, making their earnings a decisive test of market resilience amid geopolitical headwinds.

Investors watch for signs of stability in fragile markets

Markets now turn to a pivotal stretch on the calendar. Earnings from several mega-cap tech names of the colloquially named “Magnificent Seven” are due in the coming days, a strong test of stock resilience in response to the Iran war. Investors are also focused on the upcoming decision from the Federal Reserve. The meeting is expected to be the penultimate one chaired by Jerome Powell before leadership transitions to Kevin Warsh.

Oil prices plunge 15%, stock futures rally after Trump floats two-week Iran war ceasefire

This follows our earlier report, U.S. Stock Futures Drop as Iranian Ship Seizure Sparks Gulf Tensions and Oil Surge.

Coming soon LIVE COVERAGE BEGINS SOON Stock market coverage for Monday, April 27, 2026.

Why did stock futures fall despite strong monthly gains?

Futures slipped due to renewed geopolitical tensions from stalled Iran peace talks and escalations in the Strait of Hormuz, which drove oil prices higher and dampened investor appetite, even as the S&P 500 and Nasdaq posted strong April gains.

How significant is the Strait of Hormuz to global oil markets?

The Strait of Hormuz is a vital shipping lane through which about 20% of the world’s oil supply passes, making any disruption there a direct threat to global crude flows and a key driver of price volatility.

U.S. Stock futures edged higher early Wednesday after President Donald Trump extended a ceasefire with Iran, citing the country’s fractured government as justification for delaying military action.

The move came shortly after Tuesday’s market close, with Trump stating on Truth Social that he had directed the military to maintain a blockade while awaiting a unified proposal from Iranian leaders. He emphasized that the ceasefire would continue until negotiations concluded, one way or another.

S&P 500 futures gained 0.5%, Nasdaq 100 futures added 0.7%, and Dow Jones futures rose by 214 points, or 0.4%. The uptick reflected investor relief that immediate escalation had been avoided, even as underlying tensions persisted.

Despite the pause in hostilities, the situation remains fragile. A lack of commitment from Tehran led to a delay in Vice President JD Vance’s trip to join peace talks, according to U.S. Officials cited by The New York Times, and Axios. Iranian state media later reported that negotiators from Tehran would not participate, calling the talks a “waste of time.”

Oil markets reacted sharply to the news, with Brent crude and West Texas Intermediate futures swinging between gains and losses as traders weighed the implications of a continued blockade on the Strait of Hormuz. By 4:52 a.m. ET, Brent traded at $99.81 per barrel and WTI at $90.86, levels elevated by the ongoing supply restriction.

The Strait of Hormuz remains closed, continuing to constrain global oil output and sustain inflationary pressures. Yet equity markets have shown resilience, with the MSCI World Index erasing a 3.29% post-conflict decline to trade nearly 2% above its level from March 2, the first session after hostilities began.

For more on this story, see U.S. Stocks Surge as Iran Reopens Strait of Hormuz After Lebanon Ceasefire.

Analysts noted that investors are increasingly treating the conflict as a managed risk rather than an imminent catastrophe. Ray Farris, chief economist for Eastspring Investments, said markets are pricing out extreme scenarios like oil reaching $200 a barrel, shifting focus back to corporate earnings and valuation fundamentals.

Grace Peters, co-head of global investment strategy at J.P. Morgan Private Bank, observed that the current environment allows investors to return to fundamentals, particularly as the S&P 500’s price-to-earnings ratio has fallen below its five-year average. She cited earnings season as a catalyst that could further support equity gains.

Stephanie Aliaga, global market strategist at JPMorgan Asset Management, cautioned that while the path remains de-escalatory, clarity is still lacking. She noted that markets had quickly priced in a “coast is clear” scenario, leaving room for volatility as details emerge.

Key Market Reaction Despite geopolitical uncertainty, global equities have reclaimed pre-war levels, with the S&P 500 closing above 7,100 for the first time ever last week as hopes of de-escalation grew.

The broader trend suggests markets are adapting to prolonged uncertainty by focusing on earnings and valuation rather than reacting sharply to each diplomatic shift. This pattern has repeated in past conflicts, where initial spikes in risk premiums fade as investors adjust to a new normal.

This follows our earlier report, U.S. Navy seizes Iranian cargo ship in Gulf of Oman, disabling engine with gunfire.

Still, the absence of Iranian engagement raises questions about the durability of the ceasefire. Without reciprocal commitment from Tehran, the extension relies entirely on U.S. Restraint, which could be tested if negotiations stall or collapse.

Why did stock futures rise despite the ongoing conflict with Iran?

Investors reacted positively to the extension of the ceasefire because it reduced the immediate risk of U.S. Military strikes, even though the underlying conflict remains unresolved and the Strait of Hormuz blockade continues to affect oil markets.

How are oil markets responding to the continued blockade of the Strait of Hormuz?

Oil prices remain elevated, with Brent crude near $99.81 and WTI near $90.86 per barrel, as the ongoing restriction on supply continues to exert upward pressure on global energy costs.

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