On Monday, the S&P 500 Index closed down 0.24%, the Dow Jones Industrial Average down 0.01%, and the Nasdaq 100 Index down 0.31%. Crude oil prices surged over 6% following increased tensions in the Strait of Hormuz after Iran’s announcement of a shipping blockade. President Trump indicated a ceasefire with Iran, set to expire on Wednesday, is “highly unlikely” to be extended.
Amid these developments, U.S. military actions have increased, with plans to pressure Iran into reopening the Strait. Currently, around 20% of global oil and LNG transits through this strait, and Iran’s crude exports in March were about 1.7 million barrels per day. Earnings reports show that 81% of S&P 500 companies reporting so far for Q1 have beaten estimates, with overall earnings projected to rise 12% year-over-year.
