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What is the story about?
US market futures on Wall Street collapsed when trading resumed on Sunday evening local time after the weekend break, and the breakdown of the peace talks between US and Iran in Islamabad.
Futures linked to the Dow Jones are down nearly 550 points as trading began, while those on the S&P 500 and Nasdaq are down 80 points and 320 points respectively. Crude oil prices too, have surged past the mark of $100 a barrel in early Asia trading. West Texas Intermediate surged as much as 8% and is back near the mark of $105 a barrel in the initial ticks.
After the talks failed, US President Donald Trump announced a blockade of the Strait of Hormuz, stating that the US navy will block any and all ships trying to enter, or leave the region, which has now become the biggest bone of contention in the talks. Trump further said in his Truth Social post that Iran will not be allowed to "profit off this illegal act of extortion."
Following Trump's post, the US Central Command said that it will begin blocking all maritime traffic in and out of Iran's ports starting 10 AM Eastern Time on Monday. It said that vessels using the Strait to get to non-Iranian ports will not be blocked.
US markets had rallied last week in anticipation of the peace talks and a quick resolution to the war during this 14-day ceasefire period. The S&P 500 was up 3.6% last week, while the Nasdaq jumped nearly 5%, outperforming its peers. The Dow Jones was up 3%, despite a 270-point drop on Friday.
Earnings season for the quarter will also begin this week on Wall Street with Goldman Sachs reporting results later today, followed by Citigroup, Wells Fargo, JPMorgan Chase, Morgan Stanley, and Bank of America, all lined up to report their numbers during the course of the week.
The US Dollar index has also gained as much as 0.5%, while Gold and Silver prices are down between 1.6% to 3.5%, in-line with the risk assets.
Futures linked to the Dow Jones are down nearly 550 points as trading began, while those on the S&P 500 and Nasdaq are down 80 points and 320 points respectively. Crude oil prices too, have surged past the mark of $100 a barrel in early Asia trading. West Texas Intermediate surged as much as 8% and is back near the mark of $105 a barrel in the initial ticks.
After the talks failed, US President Donald Trump announced a blockade of the Strait of Hormuz, stating that the US navy will block any and all ships trying to enter, or leave the region, which has now become the biggest bone of contention in the talks. Trump further said in his Truth Social post that Iran will not be allowed to "profit off this illegal act of extortion."
Following Trump's post, the US Central Command said that it will begin blocking all maritime traffic in and out of Iran's ports starting 10 AM Eastern Time on Monday. It said that vessels using the Strait to get to non-Iranian ports will not be blocked.
US markets had rallied last week in anticipation of the peace talks and a quick resolution to the war during this 14-day ceasefire period. The S&P 500 was up 3.6% last week, while the Nasdaq jumped nearly 5%, outperforming its peers. The Dow Jones was up 3%, despite a 270-point drop on Friday.
Earnings season for the quarter will also begin this week on Wall Street with Goldman Sachs reporting results later today, followed by Citigroup, Wells Fargo, JPMorgan Chase, Morgan Stanley, and Bank of America, all lined up to report their numbers during the course of the week.
The US Dollar index has also gained as much as 0.5%, while Gold and Silver prices are down between 1.6% to 3.5%, in-line with the risk assets.
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