Wall Street Falls as Renewed U.S.-Iran Fighting Weighs on Markets

U.S. stocks declined at the start of a busy trading week as renewed fighting between the United States and Iran heightened geopolitical tensions, pushed oil prices higher, and weighed on technology shares, Grace O'Donnell and Jake Conley reported for Yahoo Finance.

Markets are reflecting investors' reaction to escalating tensions in the Middle East. (Photo: Nasdaq Exchange X)

The Dow Jones Industrial Average slipped 0.2 percent, while the S&P 500 fell 0.4 percent. The Nasdaq Composite dropped 1 percent, giving up gains made during the previous week.

Investor sentiment weakened after reports that the United States launched renewed strikes near the Strait of Hormuz over the weekend, prompting Iran to retaliate with attacks targeting U.S. allies, including Kuwait, Jordan, and Qatar.

The renewed hostilities threatened efforts to resume negotiations aimed at ending the conflict. President Donald Trump said talks with Iran were continuing, even as he declared that the previous ceasefire should be considered "over."

Oil prices climbed, with Brent crude approaching $80 per barrel, after Iran's Islamic Revolutionary Guard Corps (IRGC) reportedly announced that the Strait of Hormuz would remain closed "until further notice" and that vessels would not be allowed to transit the waterway "until the end of the American interventions in this area."

U.S. officials, however, maintained that the strategic shipping lane remained open to maritime traffic.