NEW YORK — S&P 500 futures edged lower on Monday as stalled U.S.-Iran peace talks and persistent disruptions in the Strait of Hormuz weighed on investor sentiment and pushed oil prices higher, market participants said.
Futures tied to the S&P 500 slipped almost 0.1 percent in early trading, while those for the Dow Jones Industrial Average fell about 0.2 percent and Nasdaq-100 futures also declined modestly, according to trading data. The moves followed a session in which the major U.S. stock indexes closed little changed to slightly lower amid renewed geopolitical uncertainty.
Oil prices rose on Monday, with Brent crude climbing about 2 to 3 percent to levels near recent highs, as shipments through the Strait of Hormuz remained limited following the breakdown in indirect talks. U.S. President Donald Trump canceled a planned trip by his envoys to Pakistan over the weekend, citing internal issues in Tehran and insufficient offers from Iran. Trump suggested Iran could negotiate directly by phone if it wished.
Iranian Foreign Minister Abbas Araghchi traveled to Russia on Monday for meetings with President Vladimir Putin, where discussions included regional developments. Araghchi had previously blamed excessive U.S. demands for the lack of progress in earlier talks mediated by Pakistan. Details of any new proposals or concessions from either side remained unclear.
The developments come against the backdrop of a fragile ceasefire that began earlier in April after indirect negotiations. Disruptions in the Strait of Hormuz, through which a significant portion of global oil supplies normally passes, have contributed to volatility in energy markets in recent weeks. The International Energy Agency has previously described related supply issues as among the largest in the history of the global oil market.
Analysts noted that prolonged uncertainty over the conflict involving Iran, the United States and Israel could affect broader economic sentiment, though major indexes had shown resilience in prior sessions. Energy shares gained on the higher oil prices, while some sectors sensitive to rising input costs faced pressure.
A trader on the floor of the New York Stock Exchange was quoted in market reports as saying the market was balancing hopes for eventual de-escalation against near-term risks from the impasse. No major corporate earnings or economic data releases were scheduled to dominate trading on Monday.
As of Monday evening, S&P 500 futures remained slightly lower. Further movements would depend on any updates from diplomatic channels or changes in the status of the Strait of Hormuz, traders and analysts said. The investigation into a separate shooting incident at the White House Correspondents’ Dinner on Saturday had no reported direct impact on markets.
