The S&P 500 managed a modest gain of 0.1 per cent, closing at yet another all-time high. The advance was far more subdued than in recent weeks, when strong corporate earnings and optimism that the economy could avoid the worst fallout from the conflict had fuelled a powerful rally. The Dow Jones Industrial Average slipped by 62 points, or 0.1 per cent, while the Nasdaq Composite rose 0.2 per cent to register a fresh record of its own.
The most significant market action was seen in the energy sector. Oil prices climbed more than 2.5 per cent as the Strait of Hormuz remained effectively inaccessible to commercial tanker traffic. This disruption has kept a substantial volume of crude trapped in the Middle East, limiting supplies to buyers around the world. Iranian oil exports, in particular, continue to face restrictions under the US naval blockade.
Iran has proposed reopening the Strait of Hormuz if the United States agrees to lift its blockade. Under the proposal, broader negotiations over Tehran’s nuclear programme would be deferred to a later stage. However, US President Donald Trump appears unlikely to accept the offer, which was reportedly conveyed to Washington through Pakistan.
Over the weekend, Trump instructed US envoys not to travel to Pakistan, despite Islamabad’s active role in mediating between the two sides. By suggesting that Iran could contact Washington directly with any proposal, he signalled a willingness to maintain pressure on Tehran through the ongoing blockade.
In the oil market, Brent crude for June delivery rose 2.8 per cent to settle at $108.23 a barrel. The more actively traded July contract gained 2.6 per cent, ending at $101.69 per barrel.
Before the conflict began, Brent crude had been trading at roughly $70 per barrel. Since then, prices have surged and, at moments of heightened geopolitical tension, briefly approached the $120 mark.