By Dow Jones Newswires Staff
Oil prices rose and U.S. futures fell after mixed messages from the U.S. and Iran ahead of the cease-fire deadline this week, and increased tensions in the Middle East. Bond yields rose, while gold fell.
President Trump on Sunday said the U.S. had seized an Iranian-flagged ship in the Gulf of Oman that attempted to get past the U.S. blockade. Still, Vice President JD Vance is heading to Pakistan for a new round of talks with Iran this week although Iran hasn't confirmed whether it will attend, according to reports.
In a social-media post Sunday Trump said the U.S. would "knock out every single power plant and every single bridge, in Iran" if Tehran doesn't make a deal.
--U.S. futures are lower on escalating tensions in the Middle East and after closing last week higher. The S&P 500 and Nasdaq composite index futures are both down 0.5% after closing at new records Friday, while the Dow Jones industrial average is 0.6% lower after hitting its largest one-week percentage gain since June. Investors will look ahead to another big week of earnings while retail sales for March will be closely watched on Tuesday to see how higher oil prices caused by the events in the Middle East have hit consumer spending.
--Asian equities were broadly higher on Monday, while oil prices advanced amid renewed tensions in the Middle East. Japan's Nikkei Stock Average closed 0.6% higher, led by gains in technology and machinery stocks. South Korea's Kospi rose 0.4%, while China's Shanghai composite index added 0.8%.
--European markets opened lower after closing last week higher as tensions between the U.S. and Iran increase ahead of expected talks between the two countries in Pakistan this week. London's premier FTSE 100 index was down 0.4%, although energy companies rose on the back of higher oil prices--BP shares were up 2.5% while Shell was trading 2.35% higher. Germany's DAX was down 1.1%, the Europe-wide Stoxx 600 index was 0.9% lower and France's CAC 40 was down 1%.
--Yields on U.K. government bonds climbed as rising oil prices due to the closure of the Strait of Hormuz over the weekend revived fears about inflation. The oil supply disruption raises the prospects of energy-driven inflation and interest-rate rises by major central banks in the coming months. Ten-year gilt yields rose 6.2 basis points to 4.813%, Tradeweb data show.
--Eurozone government bond yields rose, in tandem with U.S. Treasurys, amid renewed uncertainties about the Strait of Hormuz. "European markets head into the new week on a fragile footing as tensions have escalated again between the U.S. and Iran, with vessels unable to transit the strait over the weekend," says The Investment Institute by UniCredit's Francesco Maria Di Bella in a note. The 10-year German Bund yield rose 3.5 basis points to 2.994%. Yields on other 10-year eurozone bonds rose more, with Italian and French yields up nearly five basis points, according to Tradeweb.
--Bitcoin rose marginally after earlier falls, even as uncertainty over the Iran war remains elevated following weekend developments. Iran said Saturday it had reversed the reopening of the Strait of Hormuz and the waterway would stay closed as long as a U.S. blockade of Iranian ports remains in force. "The mood music of markets is one of concern, but one that sees progress toward a resolution," ING's Chris Turner said in a note. Bitcoin rises 0.1% to $74,759, LSEG data show.
--Oil prices rose more than 5% as shipping through the Strait of Hormuz remains restricted and after the U.S. seized an Iranian-flagged ship over the weekend, undermining confidence in diplomatic progress. In early European trading, Brent crude for June delivery rose 5.5% to $95.34 a barrel, while WTI futures for May gained 6.1% to $89 a barrel. Both benchmarks tumbled on Friday after Iran said that transit through the strait was open for commercial traffic. "Oil prices are being whipsawed by developments in the Middle East once again, with what appears to be de-escalation quickly turning to re-escalation," analysts at ING said.
--Gold prices fell after news that the Strait of Hormuz was closed again sent oil and gas prices higher, reviving concerns over inflation. In early European trading, gold futures in New York were down 1.3% to $4,815.30 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of major currencies, rose 0.1% to 98.24. Silver futures fall 2.4% to 79.90 an ounce, while platinum is down 2.3% to $2,092 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
April 20, 2026 04:23 ET (08:23 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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