US stocks fell on Monday as tensions between the U.S. and Iran escalated over the weekend with the seizure of an Iranian-flagged cargo ship.
“News flow from the Middle East was net negative over the weekend but (as was the case last weekend) the overall process still seems to be on a trajectory of deescalation,” wrote Adam Crisafulli of Vital Knowledge.
President Donald Trump on Sunday said the U.S. had fired on and seized an Iranian-flagged cargo ship in the Gulf of Oman. This comes after Iran declined to join another round of peace talks in Pakistan planned by the U.S.
The Iranian ship “is under U.S. Treasury Sanctions because of their prior history of illegal activity. We have full custody of the ship, and are seeing what’s on board,” Trump said in Truth Social post.
Trump also threatened to blow up all power plants and bridges in Iran if the country didn’t agree to a deal with the U.S. A ceasefire between the two countries will expire this week.
Crude prices surged following the developments. West Texas Intermediate futures popped 6% to above $88 per barrel. International Brent advanced 6% to above $95 per barrel.

