US equity investors will focus on Q1 earnings and developments in the Iran war following President Donald Trump's announcement of a blockade of the Strait of Hormuz after Iran peace talks in Pakistan ended with no agreement.
* Q1 earnings season will begin this week in right earnest with the release of quarterly results from mega-cap banks, including JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Morgan Stanley (MS), and Goldman Sachs (GS).
* Trump and his advisers are looking at resuming limited military strikes in Iran in addition to the blockade as a way to break a stalemate in peace talks, The Wall Street Journal reported Monday, citing officials and people familiar with the situation.
* The announcement of the blockade could draw American forces into a prolonged struggle to control the strategic chokepoint while compounding the global economic damage caused by the conflict, a separate report from the WSJ said.
* West Texas Intermediate crude oil futures surged 8% to $104.59, and Brent crude futures soared 7.8% to $102.95 early Monday. US Treasury yields also rose, with the 10-year up 1.8 basis points to 4.34% and the two-year climbed 2.1 basis points to 3.82%. The ICE US Dollar index advanced 0.3% to 98.99, reflecting the greenback's strength against the world's major currencies.
* Iran said no port in the Persian Gulf or the Sea of Oman would be safe if its ports are threatened, after Trump confirmed that the US blockade on ships entering or exiting Iranian ports would take effect at 10 a.m. ET Monday.
* Macroeconomic data due this week includes producer price inflation, existing home sales, ADP employment change, and initial jobless claims.
* Federal Reserve Governors Christopher Waller and Michelle W. Bowman, as well as New York Fed President John Williams, are among a plethora of central bank speakers due to share their views this week.
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