APTOPIX Iran War

The U.S. says it has attacked and seized an Iranian-flagged cargo ship near the Strait of Hormuz that tried to get around its blockade of Iranian ports. Iran's joint military command says Tehran will respond soon and calls it an act of piracy. It’s the first interception since the U.S. naval blockade began last week. The incident raises questions about the fragile ceasefire that expires within days. Trump's announcement earlier on Sunday about another round of U.S.-Iran talks in Pakistan this week is now in question. Iran hasn't confirmed its attendance. The Strait of Hormuz is crucial for global oil trade, and prices are rising again.

Oil prices are rising in early trading as a standoff between Iran and the U.S. prevented tankers from using the Strait of Hormuz. The price of U.S. crude oil increased 6.4% to $87.90 per barrel an hour after trading resumed on the Chicago Mercantile Exchange. The price of Brent crude, the international standard, climbed 5.8% to $95.64 per barrel. The market reaction followed more than two days of lifted hopes and dashed expectations involving the strait. Crude prices plunged more than 9% on Friday after Iran said it would fully reopen the strait to commercial traffic. The country's government reversed course on Saturday after the U.S. vowed to maintain a naval blockade of Iranian ports.

U.S. stocks pulled back from their record heights on a shaky Wall Street. The S&P 500 fell 0.4% Thursday to halt a weekslong rally. The Dow Jones Industrial Average lost 0.4%, and the Nasdaq composite fell 0.9%. Tesla helped drag the market lower on concerns about how much it's spending to build factories. Stocks also took a hit after the price for a barrel of Brent crude to be delivered in June briefly jumped above $107. Uncertainty continues about what will happen with the Iran war. That sent the S&P 500 suddenly down as much as 1.3% before it trimmed its loss.